Stages of Diversification

Romain Wacziarg and Jean Imbs

Research Papers from Stanford University, Graduate School of Business

Abstract: This paper, studies the evolution of sectoral labor concentration in relation to the level of per capita income. We show that various measures of sectoral concentration follow a U-shaped pattern across a wide variety of data sources: countries first diversify, in the sense that labor is spread more equally across sectors, but there exists, relatively late in the development process, a point at which they start to specialize again. We introduce a model with endogenous costs of trading internationally that provides an explanation for this new empirical fact. The model highlights a trade-off between the benefits of diversification in the context of high trading costs, and the benefits of specialization in a Ricardian sense.

JEL-codes: F15 (search for similar items in EconPapers)
Date: 2000-09
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (35)

Downloads: (external link)
http://gsbapps.stanford.edu/researchpapers/library/rp1653.pdf
Our link check indicates that this URL is bad, the error code is: 400 Bad Request (http://gsbapps.stanford.edu/researchpapers/library/rp1653.pdf [302 Found]--> https://gsbapps.stanford.edu/researchpapers/library/rp1653.pdf [302 Found]--> https://login.stanford.edu/idp/profile/SAML2/Redirect/SSO?SAMLRequest=fZLBUsIwEIZfpZN7m7aA2AxlBuEgMygdWj14cdJ2C5kJScymim9voahw4Zx%2Fv3%2F3m0yQ76Vhs9bt1AY%2BWkDnHfZSITs9pKS1immOApnie0DmKpbPnlYsDkJmrHa60pJ4M0SwTmg11wrbPdgc7Keo4GWzSsnOOYOM0i2W3BgM0HHVaFsHULc034my1BLcLkDU9MiOabbOC%2BItumWE4kfsP0TqrVDXCFEb2q3SCAnn%2BQ3UwkLlaJ6vibdcpOR9DHxc8fuqDke8GSWDuG5iiJMk4Uk5bOKmiyG2sFRHtEtJHMZ3fhT54X0RJmw4YIPhG%2FGy88UPQtVCbW%2FrKfsQsseiyPz%2BpleweLqnC5Dp5CiZnYrthfbbWP7rmkwvzPry4BtA7RtbR9d%2B8E%2FxhF4U9u2GPXcNy0Wmpai%2BvZmU%2BmtugTtISUTotB%2B5%2FiHTHw%3D%3D&RelayState=ss%3Amem%3Ab46c413d082febf84b55ae31ee56e870413c0751c13fb3faeb9c681b09996a80)

Related works:
Journal Article: Stages of Diversification (2003)
Working Paper: Stages of Diversification (2003)
Working Paper: Stages of Diversification (2000)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ecl:stabus:1653

Access Statistics for this paper

More papers in Research Papers from Stanford University, Graduate School of Business Contact information at EDIRC.
Bibliographic data for series maintained by ().