Export product range and economic growth in theEUcountries

Abstract

We analyse the number of different HS8 products in the EU countries’ exports in 1995–2015. We review what share, or coverage, of the total possible number of these products the countries have exported each year. The EU15 countries have typically witnessed a slow rise in this coverage rate, that is, a widening of their extensive margins. The exception is Finland where the share has declined considerably. On the other hand, Ireland, Greece, Portugal and the new member countries have seen a dramatic increase in their export product coverage. We analyse how the development in the coverage rate and, as a comparison, the diversification of exports as measured by the Herfindahl–Hirschman index are associated with GDP per capita growth. We find that changes in the former measure are positively associated with economic growth after we have controlled for GDP per capita catching‐up as well as investment and export activity. We also find that smaller EU economies do not specialise more than large ones in their exports as could perhaps be assumed.

Crescimento com Base nas Exportações depois da COVID-19

“…Funke and Ruhwedel (2002) moreover also found that export diversification improves not only economic growth, but also overall export performance in OECD countries. Kaitila (2018) found that also in the case of Portugal that there is a significant relationship between the increase in the number of different export products and GDP growth.…”

“…Del Rosal (2018 found this also in the case of 28 EU countries, including Portugal 16. A growing literature has found empirical evidence supporting the relationship between export diversification and growth, amongst others Herzer et al (2006), Naudé and Rossouw (2011), Agosin et al (2007) and Kaitila (2018). Funke and Ruhwedel (2002) moreover also found that export diversification improves not only economic growth, but also overall export performance in OECD countries.…”

“…Portugal's export performance in recent times shows evidence indeed of increased diversity. For example, Kaitila (2018) found that in the case of Portugal between 1995 and 2015 that there has been significant growth in the extensive margin of its exports, measured by its share of all the possible export products as per the HS8 classification. And according to Felke and Eide (2014, p. 173) Portugal also diversified the destinations to which it exports, reporting that the diversity of exports by destination country "as measured by the Herfindahl index, increased from 0.88 to 0.91 in the 2008 -2012 period" 17.…”

Export-Led Growth after Covid-19: The Case of Portugal

“…Rosal (2018) found this also in the case of 28 EU countries, including Portugal. 18 A growing literature has found empirical evidence supporting the relationship between export diversification and growth, amongst others Herzer and Nowak-Lehnmann (2006), Naudé and Rossouw (2011), Agosin et al (2012) and Kaitila (2018). Funke and Ruhwedel (2002) moreover also found that export diversification improves not only economic growth, but also overall export performance in OECD countries.…”

“…Funke and Ruhwedel (2002) moreover also found that export diversification improves not only economic growth, but also overall export performance in OECD countries. Kaitila (2018) found that in the case of Portugal that there is a significant relationship between the increase in the number of different export products and GDP growth.…”