Journal article | Zeitschriftenartikel

What Does Export Diversification Do For Growth? An Econometric Analysis

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 of the economy as export oriented sectors gain from dynamic learning activities due to contacts to foreign purchasers and exposure to international competition. Vertical diversification out of primary into manufactured exports is also associated with growth since primary export sectors prevalently do not exhibit strong spillovers. Yet there have been remarkably few empirical investigations into the link between export diversification and growth. This paper attempts to examine the hypothesis that export diversification is linked to economic growth via externalities of learning-by-doing and learning-by-exporting fostered by competition in world markets. The diversification-led growth hypothesis is tested by estimating an augmented Cobb-Douglas production function on the basis of annual time series data from Chile. Based on the theory of cointegration three types of statistical methodologies are used: the Johansen trace-test, a multivariate error-correction model and the dynamic OLS procedure. Given structural changes in the Chilean economy, time series techniques considering structural breaks are applied. The estimation results suggest that export diversification plays an important role in economic growth.

What Does Export Diversification Do For Growth?
An Econometric Analysis

What Does Export Diversification Do For Growth? An Econometric Analysis | Urheber*in: Herzer, Dierk; Nowak-Lehmann D., Felicitas

Free access - no reuse

0
/
0

Extent
Seite(n): 1825-1838
Language
Englisch
Notes
Status: Postprint; begutachtet (peer reviewed)

Bibliographic citation
Applied Economics, 38(15)

Event
Geistige Schöpfung
(who)
Herzer, Dierk
Nowak-Lehmann D., Felicitas
Event
Veröffentlichung
(when)
2006

DOI
URN
urn:nbn:de:0168-ssoar-238974
Rights
GESIS - Leibniz-Institut für Sozialwissenschaften. Bibliothek Köln
Last update
21.06.2024, 4:26 PM CEST

Data provider

This object is provided by:
GESIS - Leibniz-Institut für Sozialwissenschaften. Bibliothek Köln. If you have any questions about the object, please contact the data provider.

Object type

  • Zeitschriftenartikel

Associated

  • Herzer, Dierk
  • Nowak-Lehmann D., Felicitas

Time of origin

  • 2006

Other Objects (12)