Export diversification and economic development: a dynamic spatial data analysis

Roberto Basile (), Aleksandra Parteka and Rosanna Pittiglio ()

No 16127, Working Papers LuissLab from Dipartimento di Economia e Finanza, LUISS Guido Carli

Abstract: This paper contributes to the empirical literature on the relationship between ‘export variety’ (export diversification) and economic development by relaxing the assumption of cross-country independence and allowing for spatial diffusion of shocks in observed and unobserved factors. Export variety is measured for a balanced panel of 114 countries (1992-2012) using very detailed information on their exports (HS 6-digit product level). The estimation results of a dynamic spatial panel data model confirm the relevance of spatial network effects: indirect effects (spatial spillovers) strongly reinforce direct effects, while spatial proximity to large countries accelerates the diversification process. These results are robust to the choice of the weights matrix (an inverse-distance matrix, an exponential distance matrix and a matrix based on bilateral trade flows are used).

Keywords: export diversification; economic development; panel spatial data models (search for similar items in EconPapers)
JEL-codes: C31 F14 F43 O11 (search for similar items in EconPapers)
Date: 2016
New Economics Papers: this item is included in nep-geo, nep-int and nep-ure
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http://www.luiss.it/RePEc/pdf/lleewp/16127.pdf (application/pdf)

Related works:
Journal Article: Export diversification and economic development: A dynamic spatial data analysis (2018)
Working Paper: Export diversification and economic development: a dynamic spatial data analysis (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:lui:lleewp:16127

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