Diversification, Growth, and Volatility in Asia

Economic development critically involves diversification and structural transformation—that is, the continued, dynamic reallocation of resources from less productive to more productive sectors and activities. This paper documents that, over an exte...

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Main Authors:	Papageorgiou, Chris, Spatafora, Nikola, Wang, Ke
Format:	Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2015
Subjects:	STANDARD GROWTH DETERMINANTS GROWTH RATES OUTPUT VOLATILITY EXPORT MARKETS ECONOMIC GROWTH PRODUCTION LOWERING BARRIERS FOREIGN INVESTORS INCOME INDIVIDUAL COUNTRIES COUNTRY CASE REAL GDP EXCHANGE GDP PER CAPITA EXPORTS DEVELOPING COUNTRIES DEVELOPING ECONOMIES ECONOMIC STRUCTURE INTERNATIONAL LABOUR ORGANIZATION INDUSTRIAL DEVELOPMENT MARKET SHARES NEW PRODUCTS VARIABLES PRODUCTION STRUCTURES PRICE INPUTS EXTERNAL TRADE FACTOR ENDOWMENTS POLICY MEASURES DEVELOPMENT COMMUNICATIONS MACROECONOMIC STABILITY DEVELOPMENT ECONOMICS CONTRACT ENFORCEMENT LOW-INCOME COUNTRIES NEW PRODUCT DEVELOPMENT STRATEGIES HIGH CONCENTRATION RELATIVE IMPORTANCE PRODUCTS DEMOCRACY MIDDLE-INCOME ECONOMIES GLOBALIZATION EMERGING MARKET BARRIERS TO ENTRY GROWTH DETERMINANTS MARKETS GROSS DOMESTIC PRODUCT PER CAPITA INCOME LEVELS IMPORTS OUTPUT GROWTH EXPORT DIVERSIFICATION NATURAL RESOURCES GROSS DOMESTIC PRODUCT SUBSIDIES REAL ESTATE LIBERALIZATION ECONOMIC RESEARCH EXTERNAL FACTORS MACROECONOMIC STABILIZATION EMERGING MARKETS INVESTORS PRODUCTIVITY GROWTH MACROECONOMIC INSTABILITY HUMAN CAPITAL VALUE ADDED COUNTRY LEVEL INTERNATIONAL TRADE VOLATILITY BARRIERS EXTERNAL CONDITIONS AGRICULTURAL EXPORTS VALUE GROWTH PROSPECTS CREDIT COMPARATIVE ADVANTAGES FOREIGN INVESTMENT SUSTAINABLE GROWTH ECONOMY CAPITAL NEEDS AGRICULTURE INCOMES ESTIMATED COEFFICIENTS BORROWING COUNTRIES SHARES FOREIGN EXCHANGE MIDDLE-INCOME COUNTRY COUNTRY DATA ECONOMICS DIVERSIFICATION OUTPUT FIXED EFFECTS GOVERNANCE EXPOSURE ENFORCEMENT DATA SETS ECONOMIC DEVELOPMENT TRADE GDP DOMESTIC PRICES GOODS LAND DOMESTIC ECONOMY GENERALIZED SYSTEM OF PREFERENCES BILATERAL TRADE INVESTMENT GROWTH REGRESSIONS NATURAL RESOURCE SHARE GROWTH REGRESSION EXTERNAL SHOCKS CROSS-COUNTRY ANALYSIS WORLD TRADE POLICY RESEARCH RAPID GROWTH POOR GOVERNANCE COMMODITIES OIL EXPORTER FOOD PROCESSING MACROECONOMIC PERFORMANCE PRICES PRODUCTION COSTS DEVELOPMENT POLICY GROWTH
Online Access:	http://documents.worldbank.org/curated/en/2015/07/24836521/diversification-growth-volatility-asia http://hdl.handle.net/10986/22464

id	okr-10986-22464
recordtype	oai_dc
spelling	okr-10986-224642021-04-23T14:04:09Z Diversification, Growth, and Volatility in Asia Papageorgiou, Chris Spatafora, Nikola Wang, Ke STANDARD GROWTH DETERMINANTS GROWTH RATES OUTPUT VOLATILITY EXPORT MARKETS ECONOMIC GROWTH PRODUCTION LOWERING BARRIERS FOREIGN INVESTORS INCOME INDIVIDUAL COUNTRIES COUNTRY CASE REAL GDP EXCHANGE GDP PER CAPITA EXPORTS DEVELOPING COUNTRIES DEVELOPING ECONOMIES ECONOMIC STRUCTURE INTERNATIONAL LABOUR ORGANIZATION INDUSTRIAL DEVELOPMENT MARKET SHARES NEW PRODUCTS VARIABLES PRODUCTION STRUCTURES PRICE INPUTS EXTERNAL TRADE FACTOR ENDOWMENTS POLICY MEASURES DEVELOPMENT COMMUNICATIONS MACROECONOMIC STABILITY DEVELOPMENT ECONOMICS CONTRACT ENFORCEMENT LOW-INCOME COUNTRIES NEW PRODUCT DEVELOPMENT STRATEGIES HIGH CONCENTRATION RELATIVE IMPORTANCE PRODUCTS DEMOCRACY MIDDLE-INCOME ECONOMIES GLOBALIZATION EMERGING MARKET BARRIERS TO ENTRY GROWTH DETERMINANTS MARKETS GROSS DOMESTIC PRODUCT PER CAPITA INCOME LEVELS IMPORTS OUTPUT GROWTH EXPORT DIVERSIFICATION NATURAL RESOURCES GROSS DOMESTIC PRODUCT SUBSIDIES REAL ESTATE LIBERALIZATION ECONOMIC RESEARCH EXTERNAL FACTORS MACROECONOMIC STABILIZATION EMERGING MARKETS INVESTORS PRODUCTIVITY GROWTH MACROECONOMIC INSTABILITY HUMAN CAPITAL VALUE ADDED COUNTRY LEVEL INTERNATIONAL TRADE VOLATILITY BARRIERS EXTERNAL CONDITIONS AGRICULTURAL EXPORTS VALUE GROWTH PROSPECTS CREDIT COMPARATIVE ADVANTAGES FOREIGN INVESTMENT SUSTAINABLE GROWTH ECONOMY CAPITAL NEEDS AGRICULTURE INCOMES ESTIMATED COEFFICIENTS BORROWING COUNTRIES SHARES FOREIGN EXCHANGE MIDDLE-INCOME COUNTRY COUNTRY DATA ECONOMICS DIVERSIFICATION OUTPUT FIXED EFFECTS GOVERNANCE EXPOSURE ENFORCEMENT DATA SETS ECONOMIC DEVELOPMENT TRADE GDP DOMESTIC PRICES GOODS LAND DOMESTIC ECONOMY GENERALIZED SYSTEM OF PREFERENCES BILATERAL TRADE INVESTMENT GROWTH REGRESSIONS NATURAL RESOURCE SHARE GROWTH REGRESSION EXTERNAL SHOCKS CROSS-COUNTRY ANALYSIS WORLD TRADE POLICY RESEARCH RAPID GROWTH POOR GOVERNANCE COMMODITIES OIL EXPORTER FOOD PROCESSING MACROECONOMIC PERFORMANCE PRICES PRODUCTION COSTS DEVELOPMENT POLICY GROWTH Economic development critically involves diversification and structural transformation—that is, the continued, dynamic reallocation of resources from less productive to more productive sectors and activities. This paper documents that, over an extended period, developing Asia has on average been particularly successful in diversifying its exports, particularly in comparison with Sub-Saharan Africa. Much of the progress has occurred through diversification along the ‘extensive margin,’ that is, through entry into completely new products. In addition, developing Asia has on average benefited significantly from quality upgrading, helping it capitalize on already existing comparative advantages. Yet, agricultural and natural resources tend to have lower potential for quality upgrading than manufactures. Therefore, for lower-income “frontier” countries, diversification into products with longer “quality ladders” may be a necessary first step before large gains from quality improvement can be reaped. 2015-08-17T20:05:54Z 2015-08-17T20:05:54Z 2015-07 Working Paper http://documents.worldbank.org/curated/en/2015/07/24836521/diversification-growth-volatility-asia http://hdl.handle.net/10986/22464 English en_US Policy Research Working Paper;No. 7380 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper East Asia and Pacific South Asia
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	STANDARD GROWTH DETERMINANTS GROWTH RATES OUTPUT VOLATILITY EXPORT MARKETS ECONOMIC GROWTH PRODUCTION LOWERING BARRIERS FOREIGN INVESTORS INCOME INDIVIDUAL COUNTRIES COUNTRY CASE REAL GDP EXCHANGE GDP PER CAPITA EXPORTS DEVELOPING COUNTRIES DEVELOPING ECONOMIES ECONOMIC STRUCTURE INTERNATIONAL LABOUR ORGANIZATION INDUSTRIAL DEVELOPMENT MARKET SHARES NEW PRODUCTS VARIABLES PRODUCTION STRUCTURES PRICE INPUTS EXTERNAL TRADE FACTOR ENDOWMENTS POLICY MEASURES DEVELOPMENT COMMUNICATIONS MACROECONOMIC STABILITY DEVELOPMENT ECONOMICS CONTRACT ENFORCEMENT LOW-INCOME COUNTRIES NEW PRODUCT DEVELOPMENT STRATEGIES HIGH CONCENTRATION RELATIVE IMPORTANCE PRODUCTS DEMOCRACY MIDDLE-INCOME ECONOMIES GLOBALIZATION EMERGING MARKET BARRIERS TO ENTRY GROWTH DETERMINANTS MARKETS GROSS DOMESTIC PRODUCT PER CAPITA INCOME LEVELS IMPORTS OUTPUT GROWTH EXPORT DIVERSIFICATION NATURAL RESOURCES GROSS DOMESTIC PRODUCT SUBSIDIES REAL ESTATE LIBERALIZATION ECONOMIC RESEARCH EXTERNAL FACTORS MACROECONOMIC STABILIZATION EMERGING MARKETS INVESTORS PRODUCTIVITY GROWTH MACROECONOMIC INSTABILITY HUMAN CAPITAL VALUE ADDED COUNTRY LEVEL INTERNATIONAL TRADE VOLATILITY BARRIERS EXTERNAL CONDITIONS AGRICULTURAL EXPORTS VALUE GROWTH PROSPECTS CREDIT COMPARATIVE ADVANTAGES FOREIGN INVESTMENT SUSTAINABLE GROWTH ECONOMY CAPITAL NEEDS AGRICULTURE INCOMES ESTIMATED COEFFICIENTS BORROWING COUNTRIES SHARES FOREIGN EXCHANGE MIDDLE-INCOME COUNTRY COUNTRY DATA ECONOMICS DIVERSIFICATION OUTPUT FIXED EFFECTS GOVERNANCE EXPOSURE ENFORCEMENT DATA SETS ECONOMIC DEVELOPMENT TRADE GDP DOMESTIC PRICES GOODS LAND DOMESTIC ECONOMY GENERALIZED SYSTEM OF PREFERENCES BILATERAL TRADE INVESTMENT GROWTH REGRESSIONS NATURAL RESOURCE SHARE GROWTH REGRESSION EXTERNAL SHOCKS CROSS-COUNTRY ANALYSIS WORLD TRADE POLICY RESEARCH RAPID GROWTH POOR GOVERNANCE COMMODITIES OIL EXPORTER FOOD PROCESSING MACROECONOMIC PERFORMANCE PRICES PRODUCTION COSTS DEVELOPMENT POLICY GROWTH
spellingShingle	STANDARD GROWTH DETERMINANTS GROWTH RATES OUTPUT VOLATILITY EXPORT MARKETS ECONOMIC GROWTH PRODUCTION LOWERING BARRIERS FOREIGN INVESTORS INCOME INDIVIDUAL COUNTRIES COUNTRY CASE REAL GDP EXCHANGE GDP PER CAPITA EXPORTS DEVELOPING COUNTRIES DEVELOPING ECONOMIES ECONOMIC STRUCTURE INTERNATIONAL LABOUR ORGANIZATION INDUSTRIAL DEVELOPMENT MARKET SHARES NEW PRODUCTS VARIABLES PRODUCTION STRUCTURES PRICE INPUTS EXTERNAL TRADE FACTOR ENDOWMENTS POLICY MEASURES DEVELOPMENT COMMUNICATIONS MACROECONOMIC STABILITY DEVELOPMENT ECONOMICS CONTRACT ENFORCEMENT LOW-INCOME COUNTRIES NEW PRODUCT DEVELOPMENT STRATEGIES HIGH CONCENTRATION RELATIVE IMPORTANCE PRODUCTS DEMOCRACY MIDDLE-INCOME ECONOMIES GLOBALIZATION EMERGING MARKET BARRIERS TO ENTRY GROWTH DETERMINANTS MARKETS GROSS DOMESTIC PRODUCT PER CAPITA INCOME LEVELS IMPORTS OUTPUT GROWTH EXPORT DIVERSIFICATION NATURAL RESOURCES GROSS DOMESTIC PRODUCT SUBSIDIES REAL ESTATE LIBERALIZATION ECONOMIC RESEARCH EXTERNAL FACTORS MACROECONOMIC STABILIZATION EMERGING MARKETS INVESTORS PRODUCTIVITY GROWTH MACROECONOMIC INSTABILITY HUMAN CAPITAL VALUE ADDED COUNTRY LEVEL INTERNATIONAL TRADE VOLATILITY BARRIERS EXTERNAL CONDITIONS AGRICULTURAL EXPORTS VALUE GROWTH PROSPECTS CREDIT COMPARATIVE ADVANTAGES FOREIGN INVESTMENT SUSTAINABLE GROWTH ECONOMY CAPITAL NEEDS AGRICULTURE INCOMES ESTIMATED COEFFICIENTS BORROWING COUNTRIES SHARES FOREIGN EXCHANGE MIDDLE-INCOME COUNTRY COUNTRY DATA ECONOMICS DIVERSIFICATION OUTPUT FIXED EFFECTS GOVERNANCE EXPOSURE ENFORCEMENT DATA SETS ECONOMIC DEVELOPMENT TRADE GDP DOMESTIC PRICES GOODS LAND DOMESTIC ECONOMY GENERALIZED SYSTEM OF PREFERENCES BILATERAL TRADE INVESTMENT GROWTH REGRESSIONS NATURAL RESOURCE SHARE GROWTH REGRESSION EXTERNAL SHOCKS CROSS-COUNTRY ANALYSIS WORLD TRADE POLICY RESEARCH RAPID GROWTH POOR GOVERNANCE COMMODITIES OIL EXPORTER FOOD PROCESSING MACROECONOMIC PERFORMANCE PRICES PRODUCTION COSTS DEVELOPMENT POLICY GROWTH Papageorgiou, Chris Spatafora, Nikola Wang, Ke Diversification, Growth, and Volatility in Asia
geographic_facet	East Asia and Pacific South Asia
relation	Policy Research Working Paper;No. 7380
description	Economic development critically involves diversification and structural transformation—that is, the continued, dynamic reallocation of resources from less productive to more productive sectors and activities. This paper documents that, over an extended period, developing Asia has on average been particularly successful in diversifying its exports, particularly in comparison with Sub-Saharan Africa. Much of the progress has occurred through diversification along the ‘extensive margin,’ that is, through entry into completely new products. In addition, developing Asia has on average benefited significantly from quality upgrading, helping it capitalize on already existing comparative advantages. Yet, agricultural and natural resources tend to have lower potential for quality upgrading than manufactures. Therefore, for lower-income “frontier” countries, diversification into products with longer “quality ladders” may be a necessary first step before large gains from quality improvement can be reaped.
format	Working Paper
author	Papageorgiou, Chris Spatafora, Nikola Wang, Ke
author_facet	Papageorgiou, Chris Spatafora, Nikola Wang, Ke
author_sort	Papageorgiou, Chris
title	Diversification, Growth, and Volatility in Asia
title_short	Diversification, Growth, and Volatility in Asia
title_full	Diversification, Growth, and Volatility in Asia
title_fullStr	Diversification, Growth, and Volatility in Asia
title_full_unstemmed	Diversification, Growth, and Volatility in Asia
title_sort	diversification, growth, and volatility in asia
publisher	World Bank, Washington, DC
publishDate	2015
url	http://documents.worldbank.org/curated/en/2015/07/24836521/diversification-growth-volatility-asia http://hdl.handle.net/10986/22464
_version_	1764451148268306432

Diversification, Growth, and Volatility in Asia

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