Effects of the product diversification of exports on income at different stages of economic development

Giray Gözgör and Muhlis Can

Eurasian Business Review, 2016, vol. 6, issue 2, No 5, 215-235

Abstract: Abstract This paper empirically examines the effects of three indexes for the product diversification of exports (the Theil index, the extensive margin, and the intensive margin) on the real GDP per capita in 158 countries by considering subgroups related to income levels, i.e., in the low-, the lower middle-, the upper middle-, the non-OECD high-, and the OECD member high income countries. We implement the system-GMM estimations, and the empirical results show that the product diversification of exports is positively related to the real GDP per capita in the low-, the lower middle-, and the upper middle income countries. However, the relationship is negative in the non-OECD- and the OECD member high income countries; i.e., the product concentration of exports promotes the real GDP per capita in these countries. Further examinations also indicate that these effects mainly come from the intensive margin.

Keywords: Product diversification of exports; Extensive margin; Intensive margin; Real income; Stages of economic development (search for similar items in EconPapers)
JEL-codes: C33 F43 O11 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (30)

Downloads: (external link)
http://link.springer.com/10.1007/s40821-016-0045-5 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
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:spr:eurasi:v:6:y:2016:i:2:d:10.1007_s40821-016-0045-5

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/40821

DOI: 10.1007/s40821-016-0045-5

Access Statistics for this article

Eurasian Business Review is currently edited by Marco Vivarelli

More articles in Eurasian Business Review from Springer, Eurasia Business and Economics Society Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().