Export sophistication increases income in sub-Saharan Africa: evidence from 1981–2000

Lin, Faqin; Weldemicael, Ermias O.; Wang, Xiaosong

doi:10.1007/s00181-016-1103-7

Cited by 27 publications

(22 citation statements)

References 44 publications

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“…In line with the previous literature, we have considered the influence of the following covariates in the regression for EXPY: the GDP per capita, the investment rate, the stock of FDI, trade in P&C, and openness. The relevance of GDP per capita in the export sophistication of countries is a robust result that remains stable through different model specifications and methodologies (see, for instance, HHR, and Lin et al, 2017). However, as pointed out by Zhu and Fu (2013), rather than the role of per capita income itself, this result might mask the influence of those fundamentals of export sophistication that determine per capita income such as human capital, FDI, trade or institutional quality.…”

Section: Econometric Methodology and Resultsmentioning

confidence: 98%

Export Structure Upgrading and Economic Growth in the Western Balkan Countries

Shimbov

Alguacil

Suárez

2019

Emerging Markets Finance and Trade

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In this paper, we seek to analyze the impact that the ability to produce more sophisticated goods has on the economic performance of the Western Balkan region and to determine the factors fostering this process. To do so, we elaborate an export sophistication index, à la Hausmann. The outcomes obtained show that export sophistication has a positive and significant effect on growth in these economies. Additionally, we found that this process is driven more by the sophistication in medium-skill and technology-intensive manufactures goods rather than through sophistication in high-skill goods. Our findings also confirm that a greater participation in international production networks and a better institutional environment stimulates the upgrading of exports, and the subsequent economic growth of these economies.

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Section: Econometric Methodology and Resultsmentioning

confidence: 98%

Export Structure Upgrading and Economic Growth in the Western Balkan Countries

Shimbov

Alguacil

Suárez

2019

Emerging Markets Finance and Trade

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“…Also, they found that improvements in institutional, political, and educational factors may play an important role in enhancing better export sophistication in Sub-Saharan Africa. In this respect, Lin et al (2017) analyze whether export sophistication contributes to the income improvement in sub-Saharan Africa and show that within-country variations in export sophistication lead to income growth in the region over the long run. Further, Cabral and Veiga (2010) show that a high level of corruption is an important factor in limiting the level of export sophistication.…”

Section: Literature Reviewmentioning

confidence: 99%

Export Sophistication: A Dynamic Panel Data Approach

Kočenda

Poghosyan

2018

Emerging Markets Finance and Trade

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In this paper we analyze export sophistication based on a large panel dataset (2001-2015; 101 countries) and using various estimation algorithms. Using Monte Carlo simulations we evaluate the bias properties of estimators and show that GMM-type estimators outperform instrumentalvariable and fixed-effects estimators. Based on our analysis we document that GDP per capita and the size of the economy exhibit significant and positive effects on export sophistication; weak institutional quality exhibits negative effect. We also show that export sophistication is path-dependent and stable even during a major economic crisis, which is especially important for emerging and developing economies.

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“…For example, Mishra et al (2011), using service export data, found that increasing the sophistication of service export was positively related to economic growth. Subsequent studies focusing on a particular country or region also found a positive relationship between export sophistication and economic growth (Jarreau and Poncet, 2012;Coniglio et al, 2016;Lin et al, 2017).…”

Section: Why Does Export Sophistication Matter?mentioning

confidence: 93%

Does Outward Foreign Direct Investment Facilitate China's Export Upgrading?

Zhang

Chen

2020

China and World Economy

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This paper empirically investigates the impact of China's outward foreign direct investment (OFDI) on its export sophistication. Using a provincial-level panel dataset and applying fixed effects and instrumental variable regression techniques, the study fi nds that, on average, OFDI has no signifi cant impact on China's export sophistication. However, after the full sample is divided into different regions, the study fi nds that OFDI has a positive and signifi cant impact on export sophistication in the developed coastal region, but no such impact is observed in the less developed inland regions. Further investigation using a panel threshold model reveals that only when GDP, per capita GDP, human capital, and the research and development intensity of a home economy reach a certain level can OFDI promote export sophistication. The fi ndings suggest that accelerating eco nomic development and increasing absorptive capacity can facilitate the contribution of OFDI to China's export sophistication.

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Export sophistication increases income in sub-Saharan Africa: evidence from 1981–2000

Cited by 27 publications

References 44 publications

Export Structure Upgrading and Economic Growth in the Western Balkan Countries

Export Structure Upgrading and Economic Growth in the Western Balkan Countries

Export Sophistication: A Dynamic Panel Data Approach

Does Outward Foreign Direct Investment Facilitate China's Export Upgrading?

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