Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/202500
Authors: 
Cieślik, Andrzej
Parteka, Aleksandra
Year of Publication: 
2018
Series/Report no.: 
GUT FME Working Paper Series A 6/2018(52)
Abstract: 
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.
Subjects: 
export variety
export diversification
Ricardian model
economic development
JEL: 
F11
F14
F43
O40
O11
Creative Commons License: 
https://creativecommons.org/licenses/by-nc-nd/3.0/deed.pl
Document Type: 
Working Paper
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