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Trade Diversification, Income, and Growth: What Do We Know?

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  • Olivier CADOT

    (Centre d'Etudes et de Recherches sur le Développement International(CERDI))

  • Céline CARRERE

    (Centre d'Etudes et de Recherches sur le Développement International(CERDI))

  • Vanessa STRAUSS-KHAN

Abstract

This paper surveys the empirical literature on export and import diversification and its linkages with growth. We review widely-used measures of diversification and the evidence about their evolution focusing on how export diversification relates to trade liberalization and economic development. We also discuss the linkages between trade diversification and productivity at the firm and industry level, highlighting new advances on the linkages between import diversification and productivity.
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Suggested Citation

  • Olivier CADOT & Céline CARRERE & Vanessa STRAUSS-KHAN, 2009. "Trade Diversification, Income, and Growth: What Do We Know?," Working Papers 200931, CERDI.
    • Handle: RePEc:cdi:wpaper:1126
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    More about this item

    Keywords

    Export diversification; International trade; Growth and employment;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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