Abstract: Export diversification can lead to higher growth. Developing countries should diversify their exports since this can, for example, help them to overcome export instability or the negative impact of terms of trade in primary products. The process of economic development is typically a process of structural transformation where countries move from producing 'poor-country goods' to 'rich-country goods.' Export diversification does play an important role in this process. The author also provides robust empirical evidence of a positive effect of export diversification on per capita income growth. This effect is potentially nonlinear with developing countries benefiting from diversifying their exports in contrast to the most advanced countries that perform better with export specialization.
Publication Year: 2008
Publication Date: 2008-01-01
Language: en
Type: article
Access and Citation
Cited By Count: 158
AI Researcher Chatbot
Get quick answers to your questions about the article from our AI researcher chatbot