Patterns of Export Diversification in Developing Countries : Intensive and Extensive Margins

This paper uses highly disaggregated trade data to investigate geographic and product diversification patterns across a group of developing nations for the period from 1990 to 2005. The econometric investigation shows that the gravity equation fits...

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Bibliographic Details
Main Authors:	Amurgo-Pacheco, Alberto, Pierola, Martha Denisse
Format:	Policy Research Working Paper
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	ABSOLUTE VALUE AGRICULTURAL PRODUCTS AGRICULTURE APPAREL BASE YEAR BASKET OF GOODS BENCHMARK BILATERAL RELATIONSHIPS BILATERAL TRADE BILATERAL TRADE RELATIONS CENTRAL BANK COMMODITIES COMPARATIVE ADVANTAGE COST REDUCTION COUNTRY LEVEL CURRENCY CUSTOMS CUSTOMS UNIONS DENSITY FUNCTION DEPENDENT VARIABLE DEVELOPED COUNTRIES DEVELOPING COUNTRIES DEVELOPING ECONOMIES DEVELOPMENT ECONOMICS DISAGGREGATED LEVEL DISTRIBUTION OF TRADE DOLLAR VALUE DOMESTIC MARKET ECONOMETRIC ANALYSIS ECONOMETRICS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC LITERATURE ECONOMIC POLICY ECONOMIC RESEARCH ECONOMIC STRUCTURE ECONOMICS LETTERS ELASTICITY ELASTICITY OF SUBSTITUTION EMPIRICAL EVIDENCE EMPIRICAL WORK EQUILIBRIUM ESTIMATION METHOD ESTIMATION TECHNIQUES EXPECTED VALUE EXPORT BASKET EXPORT DIVERSIFICATION EXPORT GROWTH EXPORT PRODUCTS EXPORT PROMOTION EXPORTERS EXPORTS EXTERNALITIES FINAL GOODS FOREIGN MARKETS FREE TRADE FREE TRADE AGREEMENTS FUTURE RESEARCH GDP GEOGRAPHIC DIVERSIFICATION GLOBAL ECONOMIC PROSPECTS GRAVITY EQUATION GRAVITY MODEL GRAVITY VARIABLES GROWTH VOLATILITY HIGH GROWTH IMPACT OF TRADE IMPORTS INCOME INDEPENDENT VARIABLES INDIVIDUAL COUNTRIES INDUSTRIAL POLICY INDUSTRIAL SECTOR INDUSTRIALIZATION INTERNATIONAL ECONOMICS INTERNATIONAL PRICES INTERNATIONAL TRADE KNOWLEDGE SPILLOVERS LATIN AMERICAN MARGIN ACCOUNT MARGIN ACCOUNTS MARGINAL COST MARGINAL COSTS MARGINAL EFFECT MARGINAL EFFECTS MARKET ACCESS MARKET ENTRY MARKET SIZE METAL PRODUCTS NEGATIVE SIGN NEW PRODUCT NEW PRODUCTS 0 HYPOTHESIS OUTSOURCING POLICY AREAS POLICY PERSPECTIVE POLICY RESEARCH PREFERENTIAL TRADE PREFERENTIAL TRADE AGREEMENTS PREFERENTIAL TRADE LIBERALIZATION PRICE INDEX PRODUCTION STRUCTURE REGIONAL TRADE REGIONAL TRADE AGREEMENTS REGIONALISM RELATIVE IMPORTANCE SHARE OF WORLD TRADE SIGNIFICANT IMPACT SUNK COSTS TARIFF DATA TRADE AMONG DEVELOPING COUNTRIES TRADE COSTS TRADE DATA TRADE EFFECT TRADE FACILITATION TRADE FLOWS TRADE LIBERALIZATION TRADE MODEL TRADE MORE TRADE POLICY TRADE RELATIONSHIP TRADE STRUCTURE TRADE THEORIES TRADE VALUES TRADE VOLUME TRADING VOLUMES TRANSPARENCY UNDERESTIMATES VALUE OF EXPORTS WORLD DEVELOPMENT INDICATORS WORLD ECONOMY WORLD TRADE WORLD TRADE ORGANIZATION WTO
Online Access:	http://documents.worldbank.org/curated/en/2008/01/8930219/patterns-export-diversification-developing-countries-intensive-extensive-margins http://hdl.handle.net/10986/6447

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Summary:	This paper uses highly disaggregated trade data to investigate geographic and product diversification patterns across a group of developing nations for the period from 1990 to 2005. The econometric investigation shows that the gravity equation fits the observed differences in diversification across nations. The analysis shows that exports at the intensive margin account for the most important share of overall trade growth. At the extensive margin, geographic diversification is more important than product diversification, especially for developing countries. Taking part in free trade agreements, thereby reducing trade costs, and trading with countries in the North are also found to have positive impacts on export diversification for developing countries.

Patterns of Export Diversification in Developing Countries : Intensive and Extensive Margins

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