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Export Diversification: What's behind the Hump?

Author

Listed:
  • Olivier Cadot

    (HEC Lausanne - Faculté des Hautes Etudes Commerciales (HEC Lausanne))

  • Céline Carrere

    (CERDI - Centre d'Études et de Recherches sur le Développement International - UdA - Université d'Auvergne - Clermont-Ferrand I - CNRS - Centre National de la Recherche Scientifique)

  • Vanessa Strauss-Khan

    (ESCP Europe - Ecole Supérieure de Commerce de Paris)

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. We find a hump-shaped pattern of export diversification similar to what Imbs and Wacziarg (2003) found for production. Diversification and subsequent reconcentration take place mostly along the extensive margin whereas high income countries diversify along the intensive margin. 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, 2011. "Export Diversification: What's behind the Hump?," Post-Print halshs-00602103, HAL.
    • Handle: RePEc:hal:journl:halshs-00602103
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    JEL classification:

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

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