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Technological content of export diversification—Evolution along the economic growth process

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  • Parteka, Aleksandra
  • Zarach, Zuzanna Helena
  • Kordalska, Aleksandra

Abstract

Exports from high-income countries are three times more diversified than those from low-income economies. We provide a new tech-based interpretation of the stages of diversification accompanying the economic growth paths of countries. Using the decomposition properties of the relative Theil index in a sample of 160 countries (1996–2018), we reveal that export diversification is driven mainly by changes in the variety of non-tech exports. However, the role of the technological component (technological diversification) increases as countries grow, and in high-income countries, it is responsible for more than one-third of the overall export diversification level. We examine country-specific diversification trajectories, showing that the rapid development of technological capacity drove export diversification in China or India. The technological component can explain 40 % of the perfectly diversified U.S. export structure. We show that 4IR exports embodying digital technologies play a negligible role in the diversification process due to their small measurable share in total exports.

Suggested Citation

  • Parteka, Aleksandra & Zarach, Zuzanna Helena & Kordalska, Aleksandra, 2025. "Technological content of export diversification—Evolution along the economic growth process," Structural Change and Economic Dynamics, Elsevier, vol. 74(C), pages 14-27.
    • Handle: RePEc:eee:streco:v:74:y:2025:i:c:p:14-27
    DOI: 10.1016/j.strueco.2025.02.012
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    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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