NDLI: Export Variety, Productivity, and Country Size in a Multi-good Ricardian Model of Export Diversification

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Export Variety, Productivity, and Country Size in a Multi-good Ricardian Model of Export Diversification

Content Provider	Scilit
Author	Cieslik, Andrzej Parteka, Aleksandra
Copyright Year	2018
Description	Journal: SSRN Electronic Journal This paper addresses the lack of connection between theory and empirics in most export diversification–economic development studies. We provide a Ricardian-based theoretical explanation of countries’ relative export variety as a function of the level of technology and country size assessed with respect to the rest of the world. Relative export diversification is an outcome of two forces: a relative productivity change (technological progress) and a relative country size change (labour force growth). The model predictions are confirmed in a sample of 132 countries (1988–2014), including 53 low-income countries, for which we measure export variety using product-level trade data. The influence of technology differences on export variety is: (i) stronger than is the effect of cross-country differences in size and (ii) non-linear, driving diversification at the beginning of the development process. The results are robust to the measurement of export variety, the inclusion of control variables, and estimation methods.
Related Links	https://www.econstor.eu/bitstream/10419/202500/1/1039798551.pdf https://papers.ssrn.com/sol3/Delivery.cfm?abstractid=3296951
ISSN	10914358
e-ISSN	15565068
DOI	10.2139/ssrn.3296951
Journal	SSRN Electronic Journal
Language	English
Publisher	Elsevier BV
Publisher Date	2018-10-06
Access Restriction	Open
Subject Keyword	Journal: SSRN Electronic Journal Development Studies Export Variety Export Diversification Ricardian Model Economic Development
Content Type	Text
Resource Type	Article
Subject	Public Health, Environmental and Occupational Health Psychiatry and Mental Health

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