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The Emergence of New Successful Export Activities in Argentina: Self-Discovery, Knowledge Niches, or Barriers to Riches?

  • Gabriel Sánchez
  • Ricardo Rozemberg
  • Inés Butler
  • Hernán Rufo

This paper examines the emergence of three new successful export activities in Argentina: biotechnology applied to human health, blueberries and chocolate confections. The main interest lies in ascertaining why these sectors/products were targeted, on which previously accumulated capabilities they were built upon, and what type of hurdles they faced and how they were overcome. In the absence of government support for discovery, these new exports emerged because the pioneers could introduce permanent or dynamic barriers to entry to compensate for the knowledge externalities they generated. When they could only introduce temporary barriers to entry, laissez faire investment in experimentation was suboptimally small. These new exports emerged in sectors where there were entrepreneurs with superior planning and networking skills and/or there were larger firms that could self-provide the required public goods and solve coordination failures by themselves.

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Paper provided by Inter-American Development Bank, Research Department in its series Research Department Publications with number 3254.

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Date of creation: Mar 2008
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Handle: RePEc:idb:wpaper:3254
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  1. Verhoogen, Eric, 2007. "Trade, Quality Upgrading and Wage Inequality in the Mexican Manufacturing Sector," IZA Discussion Papers 2913, Institute for the Study of Labor (IZA).
  2. Hausmann, Ricardo & Rodrik, Dani, 2002. "Economic Development as Self Discovery," CEPR Discussion Papers 3356, C.E.P.R. Discussion Papers.
  3. Hausmann, Ricardo & Hwang, Jason & Rodrik, Dani, 2005. "What You Export Matters," Working Paper Series rwp05-063, Harvard University, John F. Kennedy School of Government.
  4. Sanghamitra Das & Mark J. Roberts & James R. Tybout, 2007. "Market Entry Costs, Producer Heterogeneity, and Export Dynamics," Econometrica, Econometric Society, vol. 75(3), pages 837-873, 05.
  5. Sofronis K. Clerides & Saul Lach & James R. Tybout, 1998. "Is Learning By Exporting Important? Micro-Dynamic Evidence From Colombia, Mexico, And Morocco," The Quarterly Journal of Economics, MIT Press, vol. 113(3), pages 903-947, August.
  6. C. A. Hidalgo & B. Klinger & A. -L. Barabasi & R. Hausmann, 2007. "The Product Space Conditions the Development of Nations," Papers 0708.2090, arXiv.org.
  7. William F. Maloney & Daniel Lederman, 2004. "R&D and Development," Econometric Society 2004 Latin American Meetings 216, Econometric Society.
  8. Stephen L. Parente & Edward C. Prescott, 2002. "Barriers to Riches," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262661306, June.
  9. Roberts, Mark J & Tybout, James R, 1997. "The Decision to Export in Colombia: An Empirical Model of Entry with Sunk Costs," American Economic Review, American Economic Association, vol. 87(4), pages 545-64, September.
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