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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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    Cited by:

    1. Persson, Maria, 2011. "From trade preferences to trade facilitation: Taking stock of the issues," Economics Discussion Papers 2011-23, Kiel Institute for the World Economy (IfW).
    2. Aleksandra Parteka, 2013. "The Role of Trade in Intra-Industry Productivity Growth—the Case of Old and New European Union Countries," Review of Development Economics, Wiley Blackwell, pages 712-731.
    3. repec:eee:inteco:v:151:y:2017:i:c:p:26-47 is not listed on IDEAS
    4. Jerzy Cieślik & Eugene Kaciak & Dianne Welsh, 2012. "The impact of geographic diversification on export performance of small and medium-sized enterprises (SMEs)," Journal of International Entrepreneurship, Springer, vol. 10(1), pages 70-93, March.
    5. Maria Cipollina & Federica Demaria & Filomena Pietrovito, 2016. "Determinants of Trade: the Role of Innovation in Presence of Quality Standards," Journal of Industry, Competition and Trade, Springer, vol. 16(4), pages 455-475, December.
    6. Persson, Maria, 2012. "From trade preferences to trade facilitation: Taking stock of the issues," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy (IfW), vol. 6, pages 1-33.
    7. Abu Ayob & Shamshubaridah Ramlee & Aisyah Abdul Rahman, 2015. "Financial factors and export behavior of small and medium-sized enterprises in an emerging economy," Journal of International Entrepreneurship, Springer, vol. 13(1), pages 49-66, March.
    8. Aleksandra Parteka, 2013. "The evolving structure of Polish exports (1994−2010) – diversification of products and trade partners," Bank i Kredyt, Narodowy Bank Polski, vol. 44(5), pages 435-466.
    9. Céline CARRERE & Olivier CADOT & Vanessa STRAUSS-KHAN & Madina KUKENOVA, 2009. "OECD Imports: Diversification and quality search," Working Papers 200909, CERDI.
    10. Alessandro Nicita & Valentina Rollo, 2013. "Tariff Preferences As A Determinant For Exports From Sub-Saharan Africa," UNCTAD Blue Series Papers 60, United Nations Conference on Trade and Development.
    11. Ricardo Lopez & Kathleen McQueeney, 2017. "Does Foreign Trade Facilitation Improve Firms’ Export Performance? A Microeconomic Analysis of Chilean Manufacturing Plants," Working Papers 112, Brandeis University, Department of Economics and International Businesss School.
    12. Daniel Saslavsky & Ben Shepherd, 2014. "Facilitating international production networks: The role of trade logistics," The Journal of International Trade & Economic Development, Taylor & Francis Journals, pages 979-999.
    13. Hinlo, Jennifer E. & Arranguez, Grace Ivy S., 2017. "Export Geographical Diversification and Economic Growth Among ASEAN Countries," MPRA Paper 81333, University Library of Munich, Germany.
    14. Olivier Cadot & Céline Carrère & Vanessa Strauss-Kahn, 2014. "OECD imports: diversification of suppliers and quality search," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), pages 1-24.
    15. Bo Xiong & Sixia Chen, 2014. "Estimating gravity equation models in the presence of sample selection and heteroscedasticity," Applied Economics, Taylor & Francis Journals, vol. 46(24), pages 2993-3003, August.
    16. Daniel Saslavsky & Ben Shepherd, 2014. "Facilitating international production networks: The role of trade logistics," The Journal of International Trade & Economic Development, Taylor & Francis Journals, pages 979-999.
    17. Nicita, Alessandro & Rollo, Valentina, 2015. "Market Access Conditions and Sub-Saharan Africa’s Exports Diversification," World Development, Elsevier, pages 254-263.
    18. Kuhlgatz, Christian & Abdulai, Awudu, 2011. "Determinants and Welfare Impacts of Export Crop Cultivation - Empirical Evidence from Ghana," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114692, European Association of Agricultural Economists.
    19. Xuefeng, Qian & Yaşar, Mahmut, 2016. "Export Market Diversification and Firm Productivity: Evidence from a Large Developing Country," World Development, Elsevier, pages 28-47.
    20. Ayob, Abu H. & Freixanet, Joan, 2014. "Insights into public export promotion programs in an emerging economy: The case of Malaysian SMEs," Evaluation and Program Planning, Elsevier, pages 38-46.
    21. Lavallée, Emmanuelle & Lochard, Julie, 2015. "The comparative effects of independence on trade," Journal of Comparative Economics, Elsevier, pages 613-632.

    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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