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What You Export Matters

  • Ricardo Hausmann
  • Jason Hwang
  • Dani Rodrik

When local cost discovery generates knowledge spillovers, specialization patterns become partly indeterminate and the mix of goods that a country produces may have important implications for economic growth. We demonstrate this proposition formally and adduce some empirical support for it. We construct an index of the "income level of a country's exports," document its properties, and show that it predicts subsequent economic growth.

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File URL: http://www.nber.org/papers/w11905.pdf
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 11905.

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Date of creation: Dec 2005
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Publication status: published as Ricardo Hausmann & Jason Hwang & Dani Rodrik, 2007. "What you export matters," Journal of Economic Growth, Springer, vol. 12(1), pages 1-25, March.
Handle: RePEc:nbr:nberwo:11905
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