Export Variety and Country Productivity
The authors study the link between export product variety and country productivity based on data from 34 industrial and developing countries, from 1982 to 1997. They measure export product variety by the share of U.S. imports on the set of goods ex...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, D.C.
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2004/09/5185180/export-variety-country-productivity http://hdl.handle.net/10986/14228 |
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okr-10986-142282021-04-23T14:03:21Z Export Variety and Country Productivity Feenstra, Robert Looi Kee, Hiau AGRICULTURE ALLOCATIVE EFFICIENCY AVERAGE PRODUCTIVITY BASE YEAR BASIC METALS CAPITAL FORMATION CAPITAL STOCK COST FUNCTIONS DEFLATORS DEVELOPING COUNTRIES ECONOMICS ELASTICITIES ELASTICITY ELASTICITY OF SUBSTITUTION EMPIRICAL EVIDENCE ENDOGENEITY EQUATIONS EQUILIBRIUM EXOGENOUS VARIABLES EXPORTS GDP GDP DEFLATOR GROWTH MODELS GROWTH RATE IMPORTS INPUT PRICES INVENTORY LABOR FORCE MINING MONOPOLISTIC COMPETITION NATIONAL INCOME PERFECT COMPETITION PETROLEUM POSITIVE EFFECTS PRICE DIFFERENCES PRICE INDEXES PRODUCT DIFFERENTIATION PRODUCTION FUNCTION PRODUCTIVE RESOURCES PRODUCTIVITY PRODUCTIVITY GROWTH QUOTAS SUPPLY CURVES TARIFF BARRIERS TIME SERIES TOTAL FACTOR PRODUCTIVITY TOTAL OUTPUT TOTAL REVENUE TRADE BARRIERS TRADE LIBERALIZATION TRADE VOLUME TRANSPORT VALUE ADDED VALUE OF OUTPUT WELFARE GAINS The authors study the link between export product variety and country productivity based on data from 34 industrial and developing countries, from 1982 to 1997. They measure export product variety by the share of U.S. imports on the set of goods exported by each sampled country relative to the world. It is a theoretically sound index which is consistent with within-country GDP maximization, as well as cross-country comparison. They construct country productivity based on relative endowments and product variety. Increases in output product variety improve country productivity as the new mix of output may better use resources of the economy, and improve allocation efficiency. Such effects depend on the elasticity of substitution in production between the different varieties. The more different the varieties are in terms of production, the more efficient it is to use the endowments of the economy when a new variety is available, which leads to productivity gains. In addition, as suggested in the literature, export product variety depends on trade costs, such as tariffs, distance, and transport costs. Such trade cost variables are used as instruments to help the authors identify the effects of export variety on country productivity. Empirical evidence supports their hypothesis. Overall, while export variety accounts for only 2 percent of cross-country productivity differences, it explains 13 percent of within-country productivity growth. A 10 percent increase in the export variety of all industries leads to a 1.3 percent increase in country productivity, while a 10 percentage point increase in tariffs facing an exporting country leads to a 2 percent fall in country productivity. 2013-06-27T13:35:21Z 2013-06-27T13:35:21Z 2004-09 http://documents.worldbank.org/curated/en/2004/09/5185180/export-variety-country-productivity http://hdl.handle.net/10986/14228 English en_US Policy Research Working Paper;No.3412 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, D.C. Publications & Research :: Policy Research Working Paper Publications & Research |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
AGRICULTURE ALLOCATIVE EFFICIENCY AVERAGE PRODUCTIVITY BASE YEAR BASIC METALS CAPITAL FORMATION CAPITAL STOCK COST FUNCTIONS DEFLATORS DEVELOPING COUNTRIES ECONOMICS ELASTICITIES ELASTICITY ELASTICITY OF SUBSTITUTION EMPIRICAL EVIDENCE ENDOGENEITY EQUATIONS EQUILIBRIUM EXOGENOUS VARIABLES EXPORTS GDP GDP DEFLATOR GROWTH MODELS GROWTH RATE IMPORTS INPUT PRICES INVENTORY LABOR FORCE MINING MONOPOLISTIC COMPETITION NATIONAL INCOME PERFECT COMPETITION PETROLEUM POSITIVE EFFECTS PRICE DIFFERENCES PRICE INDEXES PRODUCT DIFFERENTIATION PRODUCTION FUNCTION PRODUCTIVE RESOURCES PRODUCTIVITY PRODUCTIVITY GROWTH QUOTAS SUPPLY CURVES TARIFF BARRIERS TIME SERIES TOTAL FACTOR PRODUCTIVITY TOTAL OUTPUT TOTAL REVENUE TRADE BARRIERS TRADE LIBERALIZATION TRADE VOLUME TRANSPORT VALUE ADDED VALUE OF OUTPUT WELFARE GAINS |
| spellingShingle |
AGRICULTURE ALLOCATIVE EFFICIENCY AVERAGE PRODUCTIVITY BASE YEAR BASIC METALS CAPITAL FORMATION CAPITAL STOCK COST FUNCTIONS DEFLATORS DEVELOPING COUNTRIES ECONOMICS ELASTICITIES ELASTICITY ELASTICITY OF SUBSTITUTION EMPIRICAL EVIDENCE ENDOGENEITY EQUATIONS EQUILIBRIUM EXOGENOUS VARIABLES EXPORTS GDP GDP DEFLATOR GROWTH MODELS GROWTH RATE IMPORTS INPUT PRICES INVENTORY LABOR FORCE MINING MONOPOLISTIC COMPETITION NATIONAL INCOME PERFECT COMPETITION PETROLEUM POSITIVE EFFECTS PRICE DIFFERENCES PRICE INDEXES PRODUCT DIFFERENTIATION PRODUCTION FUNCTION PRODUCTIVE RESOURCES PRODUCTIVITY PRODUCTIVITY GROWTH QUOTAS SUPPLY CURVES TARIFF BARRIERS TIME SERIES TOTAL FACTOR PRODUCTIVITY TOTAL OUTPUT TOTAL REVENUE TRADE BARRIERS TRADE LIBERALIZATION TRADE VOLUME TRANSPORT VALUE ADDED VALUE OF OUTPUT WELFARE GAINS Feenstra, Robert Looi Kee, Hiau Export Variety and Country Productivity |
| relation |
Policy Research Working Paper;No.3412 |
| description |
The authors study the link between
export product variety and country productivity based on
data from 34 industrial and developing countries, from 1982
to 1997. They measure export product variety by the share of
U.S. imports on the set of goods exported by each sampled
country relative to the world. It is a theoretically sound
index which is consistent with within-country GDP
maximization, as well as cross-country comparison. They
construct country productivity based on relative endowments
and product variety. Increases in output product variety
improve country productivity as the new mix of output may
better use resources of the economy, and improve allocation
efficiency. Such effects depend on the elasticity of
substitution in production between the different varieties.
The more different the varieties are in terms of production,
the more efficient it is to use the endowments of the
economy when a new variety is available, which leads to
productivity gains. In addition, as suggested in the
literature, export product variety depends on trade costs,
such as tariffs, distance, and transport costs. Such trade
cost variables are used as instruments to help the authors
identify the effects of export variety on country
productivity. Empirical evidence supports their hypothesis.
Overall, while export variety accounts for only 2 percent of
cross-country productivity differences, it explains 13
percent of within-country productivity growth. A 10 percent
increase in the export variety of all industries leads to a
1.3 percent increase in country productivity, while a 10
percentage point increase in tariffs facing an exporting
country leads to a 2 percent fall in country productivity. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Feenstra, Robert Looi Kee, Hiau |
| author_facet |
Feenstra, Robert Looi Kee, Hiau |
| author_sort |
Feenstra, Robert |
| title |
Export Variety and Country Productivity |
| title_short |
Export Variety and Country Productivity |
| title_full |
Export Variety and Country Productivity |
| title_fullStr |
Export Variety and Country Productivity |
| title_full_unstemmed |
Export Variety and Country Productivity |
| title_sort |
export variety and country productivity |
| publisher |
World Bank, Washington, D.C. |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2004/09/5185180/export-variety-country-productivity http://hdl.handle.net/10986/14228 |
| _version_ |
1764430790977912832 |