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Export discoveries, diversification and barriers to entry

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  • Klinger, Bailey
  • Lederman, Daniel

Abstract

The literature on the relationship between economic diversification and development has grown rapidly in recent years, partly due to the surprising finding that diversification rises with gross domestic product per capita up to a certain point. Export diversification along the extensive margin is inextricable from the introduction of new export products. The authors test the hypothesis that the threat of imitation inhibits the introduction of new exports -- export discoveries -- under the assumption that the intensive and extensive margins of exports are correlated within broad country-industry groups. Econometric evidence from panel-data techniques that are appropriate for count data (the number of discoveries) suggests that discoveries within countries and industries rise with the growth of exports along the intensive margin (relative to the growth of non-export gross domestic product) but the magnitude of this partial correlation increases with domestic barriers to entry and with customs delays in exporting. However, the magnification effect of barriers to entry appears to be less significant as a determinant of total within-country export discoveries. This is consistent with inter-industry and within-country spillovers related to export discoveries, implying that barriers to entry enhance the effect of export growth on discoveries within country-industries but total discoveries might be unaffected by barriers to entry.

Suggested Citation

  • Klinger, Bailey & Lederman, Daniel, 2010. "Export discoveries, diversification and barriers to entry," Policy Research Working Paper Series 5366, The World Bank.
  • Handle: RePEc:wbk:wbrwps:5366
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Roberto Alvarez & Rolando Campusano, 2014. "Does Competition Spur Innovation in Developing Countries?," Working Papers wp388, University of Chile, Department of Economics.
    2. repec:blg:journl:v:13:y:2018:i:1:p:29-40 is not listed on IDEAS
    3. Jouini, Nizar & Oulmane, Nassim & Peridy, Nicolas, 2014. "North African countries (NACs) production and export structure: Towards diversification and export sophistication strategy," MPRA Paper 62476, University Library of Munich, Germany.
    4. Bosupeng, Mpho, 2015. "On Exports and Economic Growth-Multifarious Economies Perspective," MPRA Paper 77922, University Library of Munich, Germany, revised 2015.
    5. repec:eee:chieco:v:48:y:2018:i:c:p:258-268 is not listed on IDEAS
    6. Ricardo Argüello, 2017. "Trade diversification in Colombia, 1991-2011," REVISTA CUADERNOS DE ECONOMÍA, UN - RCE - CID, vol. 36(71), pages 345-378, July.
    7. Giray Gozgor & Muhlis Can, 2016. "Effects of the product diversification of exports on income at different stages of economic development," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 6(2), pages 215-235, August.
    8. Bosupeng, Mpho, 2015. "The Export-Led Growth Hypothesis: New Evidence and Implications," MPRA Paper 77917, University Library of Munich, Germany, revised Jun 2015.
    9. Auriol, Emmanuelle & Biancini, Sara & Paillacar, Rodrigo, 2015. "Intellectual Property Rights Protection and Trade," CEPR Discussion Papers 10602, C.E.P.R. Discussion Papers.
    10. Daniel Lederman & William F. Maloney, 2012. "Does What You Export Matter? In Search of Empirical Guidance for Industrial Policies," World Bank Publications, The World Bank, number 9371, June.
    11. Ndambendia, Houdou, 2014. "Exports diversification and knowledge sharing from south-south and south-north economic cooperation: evidence from the Central and West Africa," MPRA Paper 71571, University Library of Munich, Germany, revised 2015.
    12. Aleksandra Parteka, 2012. "Trade Diversity and Stages of Development–Evidence on EU Countries," Ekonomia journal, Faculty of Economic Sciences, University of Warsaw, vol. 30.
    13. UNDP Regional Bureau for Africa & Haroon Bhorat & Francois Steenkamp & Christopher Rooney, "undated". "Understanding the Determinants of AfricaÕs Manufacturing Malaise," UNDP Africa Policy Notes 2017-06, United Nations Development Programme, Regional Bureau for Africa.
    14. Gnangnon, Kimm & Moser, Constance Besse, 2014. "Intellectual property rights protection and export diversification: The application of utility model laws," WTO Staff Working Papers ERSD-2014-19, World Trade Organization (WTO), Economic Research and Statistics Division.
    15. repec:sgh:gosnar:y:2017:i:2:p:5-27 is not listed on IDEAS

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