Export Discoveries, Diversification and Barriers to Entry

Klinger, Bailey; Lederman, Daniel

Export Discoveries, Diversification and Barriers to Entry

Autores

Descripción

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.

Palabras clave

AGRICULTURE, BARRIER, BARRIERS TO ENTRY, BUSINESS ECONOMICS, CHANNEL, COMMERCIAL POLICY, COMMODITIES, COMMODITY, COMMODITY EXPORT, COMPARATIVE ADVANTAGE, COUNTRY FIXED EFFECT, COUNTRY FIXED EFFECTS, DEBT, DEVELOPING COUNTRIES, DEVELOPMENT ECONOMICS, DOMESTIC MARKETS, ECONOMETRICS, ECONOMIC DEVELOPMENT, EXCHANGE RATES, EXPORT GROWTH, EXPORT SECTORS, EXPORTS, FINANCIAL SYSTEM, FUTURE RESEARCH, GDP, GDP PER CAPITA, GLOBAL MARKETS, GROSS DOMESTIC PRODUCT, GROSS DOMESTIC PRODUCT PER CAPITA, GROWTH POLICY, GROWTH RATE, GROWTH RATES, INCOME, INCOME LEVELS, INDUSTRIAL ECONOMICS, INDUSTRIALIZATION, INTERNATIONAL TRADE, INVESTMENT CLIMATE, LABOR MARKET, MARKET FAILURE, MARKET FAILURES, MERCHANDISE, MERCHANDISE EXPORTS, MERCHANDISE TRADE, MIDDLE-INCOME COUNTRIES, NET EXPORTS, NEW PRODUCT, NEW PRODUCTS, PARTICULAR COUNTRY, PATENTS, PRIVATE INVESTMENTS, PRIVATE SECTOR DEVELOPMENT, PRODUCTION COSTS, PROFITABILITY, PROGRAMS, RANGE, REAL GDP, REGRESSION ANALYSIS, REGULATORY REGIME, SAFETY, SAFETY STANDARDS, SHAREHOLDERS, SMALL BUSINESS, SOCIAL VALUE, STRUCTURAL CHANGE, UPPER