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The Discovery of New Export Products in Ecuador

Author

Listed:
  • Ivan Hernandez
  • Nathalie Cely
  • Francisco Gonzalez
  • Ernesto Munoz
  • Ivan Prieto

Abstract

This paper examines export diversification in Ecuador in the cases of fresh cut flowers, canned tuna, palm heart, broccoli and mangoes, using the theoretical framework on “pioneers” and “discoveries” developed by Hausmann and Rodrik(2003), as well as work by Sánchez and Butler (2006) on export costs and related uncertainties. It is found that the discoveries were mainly of traditional competitive advantage, with various degrees of technology adoption. The following policy implications are derived: i) innovative mechanisms to share the costs of new discoveries must be found and intellectual property rights strengthened; ii) cooperation among industry experts needs to improve; iii) deeper collective action to promote public-private partnerships should be undertaken; iv) relevant information and knowledge should be made available to all interested parties; and v) a national-level agenda should be undertaken to increase private investment in promising sectors while promoting the creation of public goods and minimizing rent-seeking behavior.

Suggested Citation

  • Ivan Hernandez & Nathalie Cely & Francisco Gonzalez & Ernesto Munoz & Ivan Prieto, 2010. "The Discovery of New Export Products in Ecuador," Research Department Publications 4672, Inter-American Development Bank, Research Department.
  • Handle: RePEc:idb:wpaper:4672
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    File URL: http://www.iadb.org/research/pub_hits.cfm?pub_id=IDB-WP-165&pub_file_name=pubIDB-WP-165.pdf
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    More about this item

    Keywords

    Export diversification; Ecuador;

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy

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