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Product Variety and Economic Growth Empirical Evidence for the OECD Countries

Author

Listed:
  • Ralf Ruhwedel

  • Michael Funke

Abstract

Utilizing panel data for 19 OECD countries we find support for the hypothesis that a greater degree of product variety relative to the US helps to explain relative per capita GDP levels. The empirical work relies upon some direct measures of product variety calculated from 6-digit OECD export and import data. The econometric estimates indicate that the index of relative product variety is significantly correlated with relative per capita income levels.

Suggested Citation

  • Ralf Ruhwedel & Michael Funke, 2001. "Product Variety and Economic Growth Empirical Evidence for the OECD Countries," Quantitative Macroeconomics Working Papers 20104, Hamburg University, Department of Economics.
    • Handle: RePEc:ham:qmwops:20104
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    File URL: http://gulliver.econ.uni-hamburg.de/IWWT/homepage/qmwps/qm401.pdf
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    JEL classification:

    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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