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Export Diversification: What’s behind the Hump?

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Listed:
  • 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

The paper explores the evolution of export diversification patterns along the economic development path. Using a large database with 156 countries over 19 years at the HS6 level of disaggregation (4’991 product lines) we look for action at the “intensive” and “extensive” margins (diversification of export values among active product lines and by addition of new product lines respectively) using various export concentration indices and the number of active export lines. We also look at new product introduction as an indicator of “export-entrepreneurship”. We find a hump-shaped pattern of export diversification similar to what Imbs and Wacziarg (2003) found for production and employment. Diversification and subsequent re-concentration take place mostly along the extensive margin, although the intensive margin follows the same pattern. This hump-shaped pattern is consistent with the conjecture that countries travel across diversification cones, as discussed in Schott (2003, 2004) and Xiang (2007).

Suggested Citation

  • Olivier CADOT & Céline CARRERE & Vanessa STRAUSS-KHAN, 2009. "Export Diversification: What’s behind the Hump?," Working Papers 200934, CERDI.
  • Handle: RePEc:cdi:wpaper:1129
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    References listed on IDEAS

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    More about this item

    Keywords

    Export diversification; International trade;

    JEL classification:

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

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