Please use this identifier to cite or link to this item:
Full metadata record
|dc.contributor.author||Nowak-Lehmann D., Felicitas||en_US|
|dc.description.abstract||It is frequently suggested that export diversification contributes to an acceleration of growth in developing countries.Horizontal export diversification into completely new export sectors may generate positive externalities on the rest ofthe economy as export oriented sectors gain from dynamic learning activities due to contacts to foreign purchasers andexposure to international competition. Vertical diversification out of primary into manufactured exports is alsoassociated with growth since primary export sectors prevalently do not exhibit strong spillovers. Thus, it is to beexpected that both horizontal and vertical export diversification are positively correlated with economic growth. Yetthere have been remarkably few empirical investigations into the link between export diversification and growth. Thispaper attempts to examine the hypothesis that export diversification is linked to economic growth via externalities oflearning-by-doing and learning-by-exporting fostered by competition in world markets. The diversification-led growthhypothesis is tested by estimating an augmented Cobb-Douglas production function on the basis of annual time seriesdata from Chile. Based on the theory of cointegration three types of statistical methodologies are used: the Johansentrace-test, a multivariate error-correction model and the dynamic OLS procedure. Given Chile's dramatic changes ineconomic policy, time series techniques considering structural breaks are applied. The estimation results suggest thatexport diversification plays an important role in economic growth.||en_US|
|dc.relation.ispartofseries|||aDiscussion Papers / Universität Göttingen, Ibero-Amerika-Institut für Wirtschaftsforschung |x99||en_US|
|dc.title||Export Diversification, Externalities and Growth||en_US|
Files in This Item:
Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.