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Export Diversification And Growth In Emerging Economies

  • Manuel Agosin

This paper develops and tests a model of growth in that emphasizes the introduction of new export as the main source of growth in countries that are far within the world technological frontier and that depend for growth on adapting existing products to their economic environment. It seeks to capture the stylized facts behind growth in countries as different as Korea, Taiwan, Mauritius, Finland, China, and Chile, all of which have depended on export diversification for their growth. Thus the widening of comparative advantage is seen as the main force behind economic growth. The hypothesis of export diversification is tested with an empirical growth model. Controlling for other variables that affect growth, export diversification, alone and interacted with per capital export volume growth, is found to be highly significant in explaining per capita GDP growth over the 1980-2003 period.

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File URL: http://www.econ.uchile.cl/uploads/publicacion/7fec2632-b4c3-45a3-ab78-0970614f5bab.pdf
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Paper provided by University of Chile, Department of Economics in its series Working Papers with number wp233.

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Date of creation: Mar 2007
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Handle: RePEc:udc:wpaper:wp233
Contact details of provider: Web page: http://www.econ.uchile.cl/
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  1. Wacziarg, Romain & Imbs, Jean, 2000. "Stages of Diversification," Research Papers 1653, Stanford University, Graduate School of Business.
  2. Manuel Agosin & Claudio Bravo-Ortega, 2009. "The Emergence of New Successful Export Activities in Latin America: The Case of Chile," Research Department Publications 3265, Inter-American Development Bank, Research Department.
  3. Hausmann, Ricardo & Rodrik, Dani, 2002. "Economic Development as Self Discovery," CEPR Discussion Papers 3356, C.E.P.R. Discussion Papers.
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