The Power of Exports
The authors systematically document remarkably high degrees of concentration in manufacturing exports for a sample of 151 countries over a range of 3,000 products. For every country manufacturing exports are dominated by a few "big hits"...
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| Format: | Policy Research Working Paper |
| Language: | English |
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2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20091019154040 http://hdl.handle.net/10986/4273 |
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okr-10986-42732021-04-23T14:02:16Z The Power of Exports Easterly, William Reshef, Ariell Schwenkenberg, Julia ABSOLUTE ADVANTAGE AGRICULTURAL PRODUCTS AGRICULTURE AVERAGE PRODUCTIVITY BILATERAL TRADE BRAND CAPITAL MARKETS COMPARATIVE ADVANTAGE CONSUMERS ELASTICITY EXPORT EXPORT GROWTH EXPORT REVENUE EXPORTS EXTERNALITIES EXTERNALITY FREE MARKETS GDP GDP PER CAPITA GOAL GOVERNMENT SUBSIDY INCOME INCOME LEVELS INTERNATIONAL TRADE LESS DEVELOPED COUNTRIES MARGINAL COST MARKET FAILURE MARKET PENETRATION MARKETING MAXIMUM LIKELIHOOD ESTIMATION NATIONAL INCOME NATURAL ENDOWMENTS NATURAL RESOURCES NEWLY INDUSTRIALIZED COUNTRY PRICE INDEX PRICE LEVEL PRODUCTIVITY PRODUCTIVITY GROWTH PURCHASING PURCHASING POWER RANGE ROUTE SALES SQUARE STRENGTH SUBSTITUTION TOTAL FACTOR PRODUCTIVITY TRADE BARRIERS TRANSITION ECONOMY UPPER UTILITY FUNCTION WAGES WEALTH The authors systematically document remarkably high degrees of concentration in manufacturing exports for a sample of 151 countries over a range of 3,000 products. For every country manufacturing exports are dominated by a few "big hits" which account for most of the export value and where the "hit" includes both finding the right product and finding the right market. Higher export volumes are associated with higher degrees of concentration, after controlling for the number of destinations a country penetrates. This further highlights the importance of big hits. The distribution of exports closely follows a power law, especially in the upper tail. These findings do not support a "picking winners" policy for export development; the power law characterization implies that the chance of picking a winner diminishes exponentially with the degree of success. Moreover, given the size of the economy, developing countries are more exposed to demand shocks than rich ones, which further lowers the benefits from trying to pick winners. 2012-03-19T19:13:04Z 2012-03-19T19:13:04Z 2009-10-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20091019154040 http://hdl.handle.net/10986/4273 English Policy Research working paper ; no. WPS 5081 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper The World Region The World Region |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ABSOLUTE ADVANTAGE AGRICULTURAL PRODUCTS AGRICULTURE AVERAGE PRODUCTIVITY BILATERAL TRADE BRAND CAPITAL MARKETS COMPARATIVE ADVANTAGE CONSUMERS ELASTICITY EXPORT EXPORT GROWTH EXPORT REVENUE EXPORTS EXTERNALITIES EXTERNALITY FREE MARKETS GDP GDP PER CAPITA GOAL GOVERNMENT SUBSIDY INCOME INCOME LEVELS INTERNATIONAL TRADE LESS DEVELOPED COUNTRIES MARGINAL COST MARKET FAILURE MARKET PENETRATION MARKETING MAXIMUM LIKELIHOOD ESTIMATION NATIONAL INCOME NATURAL ENDOWMENTS NATURAL RESOURCES NEWLY INDUSTRIALIZED COUNTRY PRICE INDEX PRICE LEVEL PRODUCTIVITY PRODUCTIVITY GROWTH PURCHASING PURCHASING POWER RANGE ROUTE SALES SQUARE STRENGTH SUBSTITUTION TOTAL FACTOR PRODUCTIVITY TRADE BARRIERS TRANSITION ECONOMY UPPER UTILITY FUNCTION WAGES WEALTH |
| spellingShingle |
ABSOLUTE ADVANTAGE AGRICULTURAL PRODUCTS AGRICULTURE AVERAGE PRODUCTIVITY BILATERAL TRADE BRAND CAPITAL MARKETS COMPARATIVE ADVANTAGE CONSUMERS ELASTICITY EXPORT EXPORT GROWTH EXPORT REVENUE EXPORTS EXTERNALITIES EXTERNALITY FREE MARKETS GDP GDP PER CAPITA GOAL GOVERNMENT SUBSIDY INCOME INCOME LEVELS INTERNATIONAL TRADE LESS DEVELOPED COUNTRIES MARGINAL COST MARKET FAILURE MARKET PENETRATION MARKETING MAXIMUM LIKELIHOOD ESTIMATION NATIONAL INCOME NATURAL ENDOWMENTS NATURAL RESOURCES NEWLY INDUSTRIALIZED COUNTRY PRICE INDEX PRICE LEVEL PRODUCTIVITY PRODUCTIVITY GROWTH PURCHASING PURCHASING POWER RANGE ROUTE SALES SQUARE STRENGTH SUBSTITUTION TOTAL FACTOR PRODUCTIVITY TRADE BARRIERS TRANSITION ECONOMY UPPER UTILITY FUNCTION WAGES WEALTH Easterly, William Reshef, Ariell Schwenkenberg, Julia The Power of Exports |
| geographic_facet |
The World Region The World Region |
| relation |
Policy Research working paper ; no. WPS 5081 |
| description |
The authors systematically document
remarkably high degrees of concentration in manufacturing
exports for a sample of 151 countries over a range of 3,000
products. For every country manufacturing exports are
dominated by a few "big hits" which account for
most of the export value and where the "hit"
includes both finding the right product and finding the
right market. Higher export volumes are associated with
higher degrees of concentration, after controlling for the
number of destinations a country penetrates. This further
highlights the importance of big hits. The distribution of
exports closely follows a power law, especially in the upper
tail. These findings do not support a "picking
winners" policy for export development; the power law
characterization implies that the chance of picking a winner
diminishes exponentially with the degree of success.
Moreover, given the size of the economy, developing
countries are more exposed to demand shocks than rich ones,
which further lowers the benefits from trying to pick winners. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Easterly, William Reshef, Ariell Schwenkenberg, Julia |
| author_facet |
Easterly, William Reshef, Ariell Schwenkenberg, Julia |
| author_sort |
Easterly, William |
| title |
The Power of Exports |
| title_short |
The Power of Exports |
| title_full |
The Power of Exports |
| title_fullStr |
The Power of Exports |
| title_full_unstemmed |
The Power of Exports |
| title_sort |
power of exports |
| publishDate |
2012 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20091019154040 http://hdl.handle.net/10986/4273 |
| _version_ |
1764390694521143296 |