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What You Export Matters

  • Hausmann, Ricardo
  • Hwang, Jason
  • Rodrik, Dani

When local cost discovery generates knowledge spillovers, specialization patterns become partly indeterminate and the mix of goods that a country produces may have important implications for economic growth. We demonstrate this proposition formally and adduce some empirical support for it. We construct an index of the 'income level of a country's exports,' document its properties, and show that it predicts subsequent economic growth.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 5444.

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Date of creation: Jan 2006
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Handle: RePEc:cpr:ceprdp:5444
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