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Geographical Diversification of Developing Country Exports

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  • shepherd, Ben

Abstract

Summary This paper shows that export costs, tariffs, and international transport costs are all robustly associated with geographical export diversification in a sample of 117 developing countries. Reducing each of them by one standard deviation could lead to increases in the number of export destinations of 12%, 3%, and 4%, respectively. From a geographical diversification point of view, trade facilitation at home is an important complement to improving market access abroad. Customs procedures and document preparation in exporting countries have particularly strong effects. Trade costs in general have larger effects in manufacturing, and highly differentiated sectors.

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  • shepherd, Ben, 2010. "Geographical Diversification of Developing Country Exports," World Development, Elsevier, vol. 38(9), pages 1217-1228, September.
    • Handle: RePEc:eee:wdevel:v:38:y:2010:i:9:p:1217-1228
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    More about this item

    Keywords

    trade and development market access trade facilitation export diversification economic geography;

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy

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