What Determines Export Diversification in the Development Process? Empirical Assessment

Abstract

1 From now on, we use the term 'degree of overall specialisation' as an opposite of 'diversification' so that low export specialisation means high export diversification and vice versa. 2 Similar results can be found in Minondo's (2011) non-parametric and parametric results. 5 For the sake of brevity, we have not cited many other aspects of structural change, for example, we have not considered the ideological aspect. 6 Qualitative aspects of economic structure are also underlined in other supply side contribution (Lucas, 1988) and in the Keynesian demand-side literature (see Thirlwall, 1979;McCombie and Thirlwall, 2004).

Determinants of Related and Unrelated Export Diversification

“…Economic development also promotes entrepreneurship and innovation through forces of competition that results in increase in diversification (Acemoglu and Zilibotti 1997). Empirical findings on the relationship between development and diversification have shown both monotonic (De Benedictis et al 2009;Parteka and Tamberi 2013) as well as non-monotonic relationships (Cadot et al 2011a;Imbs and Wacziarg 2003;Koren and Tenreyro 2007). An example of a non-monotonic relationship between development and specialization is the U-shaped relationship which was first observed by Imbs and Wacziarg (2003).…”

“…Low-income countries generally have low levels of diversification due to insufficient capital. As their economies grow, they experience structural changes that shape the overall structure of the economy leading to a wider set of economic opportunities and higher productive efficiency (Acemoglu and Zilibotti 1997;Parteka and Tamberi 2013). However, after reaching a certain threshold, they tend to re-specialize by getting rid of inefficient sectors and allocating more resources into the productive ones.…”

“…The geographical position of a country also plays an important role in the diversification process (Cadot et al 2011b;Parteka and Tamberi 2013). Venables and Limao (2002) for instance, suggest that being closer to one's trade partners or major markets reduces the cost of trade, opening up opportunities for a country to trade.…”

Kryzys w handlu z Rosją a dywersyfikacja polskiego eksportu żywności / Crisis in trade with Russia vs. diversification of Polish food exports

“…Zdecydowanie większa uwaga w literaturze przedmiotu poświęcona jest zróżnicowaniu produktowemu handlu zagranicznego (zob. [Cadot, Carrere, Strauss-Kahn 2013;Parteka, Tamberi 2013]). Natomiast uzasadnione jest przyjęcie tezy, że "w praktyce, większe zróżnicowanie dóbr będących przedmiotem eksportu idzie w parze z większym zróżnicowaniem krajów, do których te dobra są eksportowane" [Parteka 2015].…”

Margins, Gravity, and Causality: Export Diversification and Income Levels Reconsidered

“…Benedictis et al (2009) leave this question open for future work, but Parteka and Tamberi (2013) explore numerous covariates that may potentially explain the diversification levels observed across countries. This paper follows up on their suspicion that a country's size and geography are important determinants of specialization and uses Eaton and Kortum's (2002) theoretical framework to formalize export diversification at the extensive margin.…”