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Export-led growth in Europe: Where and what to export?

Listed author(s):
  • Ana Paula Ribeiro
  • Paula Gracinda Teixeira Santos
  • Vitor Carvalho

From the late 70s onwards, the literature has produced numerous studies, mostly for developing countries, relating exports and economic growth. Since several European Union (EU) countries face strong recessions in the sequence of the economic crisis and the related fiscal consolidation measures, exports emerge as a meaningful source of growth for developed countries with rather stagnant domestic markets. In this context, we assess if and how the product and the destination structures of exports shape the growth dynamics for the EU countries. Estimation of fixed effects model using panel data of 23 European Union (EU) members over the period 1995-2010. We find that economic growth is foster through export specialization in high value-added products, such as manufactures and high-technology. Moreover, we find evidence that higher growth is fostered by export diversification across partners while enlarging the portfolio of partners, mainly to less developed and more distant countries, has negative impacts on European growth. Unambiguously, relative concentration of exports should be directed towards higher growth countries.

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Paper provided by EcoMod in its series EcoMod2013 with number 5265.

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Date of creation: 21 Jun 2013
Handle: RePEc:ekd:004912:5265
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