Patterns of Export Diversification in Developing Countries : Intensive and Extensive Margins

Amurgo-Pacheco, Alberto; Pierola, Martha Denisse

Patterns of Export Diversification in Developing Countries : Intensive and Extensive Margins

Autores

Amurgo-Pacheco, Alberto

Pierola, Martha Denisse

Editor

World Bank, Washington, DC

Descripción

This paper uses highly disaggregated trade data to investigate geographic and product diversification patterns across a group of developing nations for the period from 1990 to 2005. The econometric investigation shows that the gravity equation fits the observed differences in diversification across nations. The analysis shows that exports at the intensive margin account for the most important share of overall trade growth. At the extensive margin, geographic diversification is more important than product diversification, especially for developing countries. Taking part in free trade agreements, thereby reducing trade costs, and trading with countries in the North are also found to have positive impacts on export diversification for developing countries.

Palabras clave

ABSOLUTE VALUE, AGRICULTURAL PRODUCTS, AGRICULTURE, APPAREL, BASE YEAR, BASKET OF GOODS, BENCHMARK, BILATERAL RELATIONSHIPS, BILATERAL TRADE, BILATERAL TRADE RELATIONS, CENTRAL BANK, COMMODITIES, COMPARATIVE ADVANTAGE, COST REDUCTION, COUNTRY LEVEL, CURRENCY, CUSTOMS, CUSTOMS UNIONS, DENSITY FUNCTION, DEPENDENT VARIABLE, DEVELOPED COUNTRIES, DEVELOPING COUNTRIES, DEVELOPING ECONOMIES, DEVELOPMENT ECONOMICS, DISAGGREGATED LEVEL, DISTRIBUTION OF TRADE, DOLLAR VALUE, DOMESTIC MARKET, ECONOMETRIC ANALYSIS, ECONOMETRICS, ECONOMIC DEVELOPMENT, ECONOMIC GROWTH, ECONOMIC LITERATURE, ECONOMIC POLICY, ECONOMIC RESEARCH, ECONOMIC STRUCTURE, ECONOMICS LETTERS, ELASTICITY, ELASTICITY OF SUBSTITUTION, EMPIRICAL EVIDENCE, EMPIRICAL WORK, EQUILIBRIUM, ESTIMATION METHOD, ESTIMATION TECHNIQUES, EXPECTED VALUE, EXPORT BASKET, EXPORT DIVERSIFICATION, EXPORT GROWTH, EXPORT PRODUCTS, EXPORT PROMOTION, EXPORTERS, EXPORTS, EXTERNALITIES, FINAL GOODS, FOREIGN MARKETS, FREE TRADE, FREE TRADE AGREEMENTS, FUTURE RESEARCH, GDP, GEOGRAPHIC DIVERSIFICATION, GLOBAL ECONOMIC PROSPECTS, GRAVITY EQUATION, GRAVITY MODEL, GRAVITY VARIABLES, GROWTH VOLATILITY, HIGH GROWTH, IMPACT OF TRADE, IMPORTS, INCOME, INDEPENDENT VARIABLES, INDIVIDUAL COUNTRIES, INDUSTRIAL POLICY, INDUSTRIAL SECTOR, INDUSTRIALIZATION, INTERNATIONAL ECONOMICS, INTERNATIONAL PRICES, INTERNATIONAL TRADE, KNOWLEDGE SPILLOVERS, LATIN AMERICAN, MARGIN ACCOUNT, MARGIN ACCOUNTS, MARGINAL COST, MARGINAL COSTS, MARGINAL EFFECT, MARGINAL EFFECTS, MARKET ACCESS, MARKET ENTRY, MARKET SIZE, METAL PRODUCTS, NEGATIVE SIGN, NEW PRODUCT, NEW PRODUCTS, 0 HYPOTHESIS, OUTSOURCING, POLICY AREAS, POLICY PERSPECTIVE, POLICY RESEARCH, PREFERENTIAL TRADE, PREFERENTIAL TRADE AGREEMENTS, PREFERENTIAL TRADE LIBERALIZATION, PRICE INDEX, PRODUCTION STRUCTURE, REGIONAL TRADE, REGIONAL TRADE AGREEMENTS, REGIONALISM, RELATIVE IMPORTANCE, SHARE OF WORLD TRADE, SIGNIFICANT IMPACT, SUNK COSTS, TARIFF DATA, TRADE AMONG DEVELOPING COUNTRIES, TRADE COSTS, TRADE DATA, TRADE EFFECT, TRADE FACILITATION, TRADE FLOWS, TRADE LIBERALIZATION, TRADE MODEL, TRADE MORE, TRADE POLICY, TRADE RELATIONSHIP, TRADE STRUCTURE, TRADE THEORIES, TRADE VALUES, TRADE VOLUME, TRADING VOLUMES, TRANSPARENCY, UNDERESTIMATES, VALUE OF EXPORTS, WORLD DEVELOPMENT INDICATORS, WORLD ECONOMY, WORLD TRADE, WORLD TRADE ORGANIZATION, WTO