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Trade Diversity And Stages Of Development - Evidence On Eu Countries

  • Aleksandra Parteka


    (Gdansk University of Technology, Gdansk, Poland)

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).

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Paper provided by Faculty of Management and Economics, Gdansk University of Technology in its series GUT FME Working Paper Series A with number 8.

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Length: pages
Date of creation: Mar 2013
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Handle: RePEc:gdk:wpaper:8
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  1. Marius Brülhart, 2009. "An Account of Global Intra-industry Trade, 1962-2006," The World Economy, Wiley Blackwell, vol. 32(3), pages 401-459, 03.
  2. Olivier CADOT & Céline CARRERE & Vanessa STRAUSS-KAHN, 2011. "Trade Diversification, Income, and Growth: What Do We Know?," Working Papers P33, FERDI.
  3. Wacziarg, Romain & Imbs, Jean, 2000. "Stages of Diversification," Research Papers 1653, Stanford University, Graduate School of Business.
  4. 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.
  5. 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, 08.
  6. 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.
  7. Aleksandra Parteka, 2010. "Employment and export specialisation along the development path: some robust evidence," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 145(4), pages 615-640, January.
  8. Olivier CADOT & Céline CARRERE & Vanessa STRAUSS-KHAN, 2009. "Export Diversification: What’s behind the Hump?," Working Papers 200934, CERDI.
  9. Aleksandra Parteka, 2009. "Employment Specialization in the Enlarged European Union," Ekonomia journal, Faculty of Economic Sciences, University of Warsaw, vol. 24.
  10. Cadot, Olivier & Carrere, Celine & Strauss-Kahn, Vanessa, 2011. "OECD imports : diversification of suppliers and quality search," Policy Research Working Paper Series 5627, The World Bank.
  11. Richard Newfarmer & William Shaw & Peter Walkenhorst, 2009. "Breaking Into New Markets," World Bank Publications, The World Bank, number 2616.
  12. Luca Benedictis & Marco Gallegati & Massimo Tamberi, 2009. "Overall trade specialization and economic development: countries diversify," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 145(1), pages 37-55, April.
  13. 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, 06.
  14. Feenstra, Robert C, 1994. "New Product Varieties and the Measurement of International Prices," American Economic Review, American Economic Association, vol. 84(1), pages 157-77, March.
  15. Klinger, Bailey & Lederman, Daniel, 2011. "Export discoveries, diversification and barriers to entry," Economic Systems, Elsevier, vol. 35(1), pages 64-83, March.
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