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Effects of the product diversification of exports on income at different stages of economic development

Author

Listed:
  • Giray Gozgor

    () (Istanbul Medeniyet University)

  • Muhlis Can

    () (Hakkari University)

Abstract

Abstract This paper empirically examines the effects of three indexes for the product diversification of exports (the Theil index, the extensive margin, and the intensive margin) on the real GDP per capita in 158 countries by considering subgroups related to income levels, i.e., in the low-, the lower middle-, the upper middle-, the non-OECD high-, and the OECD member high income countries. We implement the system-GMM estimations, and the empirical results show that the product diversification of exports is positively related to the real GDP per capita in the low-, the lower middle-, and the upper middle income countries. However, the relationship is negative in the non-OECD- and the OECD member high income countries; i.e., the product concentration of exports promotes the real GDP per capita in these countries. Further examinations also indicate that these effects mainly come from the intensive margin.

Suggested Citation

  • Giray Gozgor & Muhlis Can, 2016. "Effects of the product diversification of exports on income at different stages of economic development," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 6(2), pages 215-235, August.
  • Handle: RePEc:spr:eurasi:v:6:y:2016:i:2:d:10.1007_s40821-016-0045-5
    DOI: 10.1007/s40821-016-0045-5
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    References listed on IDEAS

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    Cited by:

    1. Gozgor, Giray & Can, Muhlis, 2016. "Does Export Product Quality Matter for CO2 Emissions? Evidence from China," MPRA Paper 71873, University Library of Munich, Germany.
    2. repec:eco:journ1:2018-04-15 is not listed on IDEAS
    3. repec:spr:eurasi:v:7:y:2017:i:2:d:10.1007_s40821-017-0087-3 is not listed on IDEAS
    4. Ndubuisi, Gideon & Foster-McGregor, Neil, 2018. "Domestic intellectual property rights protection and the margins of bilateral exports," MERIT Working Papers 035, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    5. repec:eee:soceps:v:62:y:2018:i:c:p:56-74 is not listed on IDEAS

    More about this item

    Keywords

    Product diversification of exports; Extensive margin; Intensive margin; Real income; Stages of economic development;

    JEL classification:

    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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