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Export Diversification: What's behind the Hump?

Author

Listed:
  • Olivier Cadot

    (CERDI - Centre d'Études et de Recherches sur le Développement International - UdA - Université d'Auvergne - Clermont-Ferrand I - CNRS - Centre National de la Recherche Scientifique)

  • Céline Carrere

    (CERDI - Centre d'Études et de Recherches sur le Développement International - UdA - Université d'Auvergne - Clermont-Ferrand I - CNRS - Centre National de la Recherche Scientifique)

  • Vanessa Strauss-Khan

    (ESCP Europe - Ecole Supérieure de Commerce de Paris)

Abstract
The paper explores the evolution of export diversification patterns along the economic development path. Using a large database with 156 countries over 19 years at the HS6 level of disaggregation (4'991 product lines) we look for action at the "intensive" and "extensive" margins (diversification of export values among active product lines and by addition of new product lines respectively) using various export concentration indices and the number of active export lines. We also look at new product introduction as an indicator of "export-entrepreneurship". We find a hump-shaped pattern of export diversification similar to what Imbs and Wacziarg (2003) found for production and employment. Diversification and subsequent re-concentration take place mostly along the extensive margin, although the intensive margin follows the same pattern. This hump-shaped pattern is consistent with the conjecture that countries travel across diversification cones, as discussed in Schott (2003, 2004) and Xiang (2007).

Suggested Citation

  • Olivier Cadot & Céline Carrere & Vanessa Strauss-Khan, 2011. "Export Diversification: What's behind the Hump?," CERDI Working papers halshs-00553597, HAL.
    • Handle: RePEc:hal:cdiwps:halshs-00553597
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00553597
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    international trade; Export diversification;

    JEL classification:

    • F1 - International Economics - - Trade
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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