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Trade Diversity And Stages Of Development - Evidence On Eu Countries

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  • Aleksandra Parteka

    () (Gdansk University of Technology, Gdansk, Poland)

Abstract

The paper presents the dynamics of trade diversity with respect to stages of development in the European context. The analysis focuses on EU27 countries observed across the years 1988-2010 and compared to a sample of 136 international economies at all levels of income per capita. We use product level statistics (six digit HS0) and confront export and import patterns of absolute diversification/concentration. The results show that in line with ‘stages of diversification’ approach (Imbs and Wacziarg, 2003), EU27 countries are characterized by high degree of trade diversity (on average, EU27 countries export 78% and import 90% of goods effectively exported and imported at the world level) and within the analyzed period most of them registered a reconcentration of trade structures. Obtained estimation results confirm positive relationship between trade diversity and economic development levels (conditional mainly upon the size of the country) with a possibility of reconcentration at higher stages of development (observable in nonparametric estimates).

Suggested Citation

  • Aleksandra Parteka, 2013. "Trade Diversity And Stages Of Development - Evidence On Eu Countries," GUT FME Working Paper Series A 8, Faculty of Management and Economics, Gdansk University of Technology.
  • Handle: RePEc:gdk:wpaper:8
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    File URL: ftp://ftp.zie.pg.gda.pl/RePEc/gdk/wpaper/WP_GUTFME_A_8_Parteka.pdf
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    References listed on IDEAS

    as
    1. Aleksandra Parteka, 2009. "Employment Specialization in the Enlarged European Union," Ekonomia journal, Faculty of Economic Sciences, University of Warsaw, vol. 24.
    2. Jean Imbs & Romain Wacziarg, 2003. "Stages of Diversification," American Economic Review, American Economic Association, vol. 93(1), pages 63-86, March.
    3. Olivier Cadot & Céline Carrère & Vanessa Strauss-Kahn, 2014. "OECD imports: diversification of suppliers and quality search," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 150(1), pages 1-24, February.
    4. Frank Bickenbach & Eckhardt Bode & Christiane Krieger-Boden, 2013. "Closing the gap between absolute and relative measures of localization, concentration or specialization," Papers in Regional Science, Wiley Blackwell, vol. 92(3), pages 465-479, August.
    5. Olivier Cadot & Céline Carrère & Vanessa Strauss-Kahn, 2011. "Export Diversification: What's behind the Hump?," The Review of Economics and Statistics, MIT Press, vol. 93(2), pages 590-605, May.
    6. Aleksandra Parteka, 2010. "Employment and export specialisation along the development path: some robust evidence," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 145(4), pages 615-640, January.
    7. Feenstra, Robert C, 1994. "New Product Varieties and the Measurement of International Prices," American Economic Review, American Economic Association, vol. 84(1), pages 157-177, March.
    8. Aleksandra Parteka & Massimo Tamberi, 2013. "What Determines Export Diversification in the Development Process? Empirical Assessment," The World Economy, Wiley Blackwell, vol. 36(6), pages 807-826, June.
    9. Marius Brülhart, 2009. "An Account of Global Intra-industry Trade, 1962-2006," The World Economy, Wiley Blackwell, vol. 32(3), pages 401-459, March.
    10. Olivier Cadot & Céline Carrère & Vanessa Strauss-Kahn, 2013. "Trade Diversification, Income, And Growth: What Do We Know?," Journal of Economic Surveys, Wiley Blackwell, vol. 27(4), pages 790-812, September.
    11. Tibor Besedes & Thomas Prusa, 2006. "Ins, outs, and the duration of trade," Canadian Journal of Economics, Canadian Economics Association, vol. 39(1), pages 266-295, February.
    12. David Hummels & Peter J. Klenow, 2005. "The Variety and Quality of a Nation's Exports," American Economic Review, American Economic Association, vol. 95(3), pages 704-723, June.
    13. Klinger, Bailey & Lederman, Daniel, 2011. "Export discoveries, diversification and barriers to entry," Economic Systems, Elsevier, vol. 35(1), pages 64-83, March.
    14. Richard Newfarmer & William Shaw & Peter Walkenhorst, 2009. "Breaking Into New Markets," World Bank Publications, The World Bank, number 2616, July.
    15. Luca Benedictis & Marco Gallegati & Massimo Tamberi, 2009. "Overall trade specialization and economic development: countries diversify," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 145(1), pages 37-55, April.
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    Cited by:

    1. Aleksandra Parteka, 2013. "The evolving structure of Polish exports (1994−2010) – diversification of products and trade partners," Bank i Kredyt, Narodowy Bank Polski, vol. 44(5), pages 435-466.
    2. repec:sgh:gosnar:y:2017:i:2:p:5-27 is not listed on IDEAS

    More about this item

    Keywords

    diversification; concentration; trade; economic development;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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