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Export sophistication: A dynamic panel data approach

Listed author(s):
  • Evzen Kocenda

    ()

    (Institute of Economic Studies, Faculty of Social Sciences, Charles University in Prague, Czech Republic)

  • Karen Poghosyan

    ()

    (Central Bank of Armenia, Economic Research Department, Yerevan, Armenia)

In this paper we analyze export sophistication based on a large panel dataset (2001?2015; 101 countries) and using various estimation algorithms. Using Monte Carlo simulations we evaluate the bias properties of estimators and show that GMM-type estimators outperform instrumentalvariable and fixed-effects estimators. Based on our analysis we document that GDP per capita and the size of the economy exhibit significant and positive effects on export sophistication; weak institutional quality exhibits negative effect. We also show that export sophistication is path-dependent and stable even during a major economic crisis, which is especially important for emerging and developing economies.

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File URL: http://www.kier.kyoto-u.ac.jp/DP/DP980.pdf
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Paper provided by Kyoto University, Institute of Economic Research in its series KIER Working Papers with number 980 Classification-C52; C53; F14; F47; O19.

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Length: 29pages
Date of creation: Nov 2017
Handle: RePEc:kyo:wpaper:980
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