WANT EXPORT DIVERSIFICATION? EDUCATE THE KIDS FIRST

Michael Jetter and Andrés Ramírez Hassan ()

Economic Inquiry, 2015, vol. 53, issue 4, 1765-1782

Abstract: type="main" xml:id="ecin12213-abs-0001"> This paper uses Bayesian model averaging to uncover the true determinants of export diversification among 36 potential factors, and thus 2-super-36 potential models. Using data from 2001 to 2010, our results reveal two strong predictors: Primary school enrollment (99.7% posterior inclusion probability in the true model) raises export diversification, whereas the share of natural resources in gross domestic product (98.6%) lowers diversification levels. The importance of basic education coverage offers policymakers an opening toward diversifying exports, at least in the long run. This result is robust to accounting for the endogeneity of income levels by applying an instrumental variable BMA method. ( JEL C11, F1, F34, O1, O2, O11)

Date: 2015
References: Add references at CitEc
Citations: View citations in EconPapers (24)

Downloads: (external link)
http://hdl.handle.net/10.1111/ecin.2015.53.issue-4 (text/html)
Access to full text is restricted to subscribers.

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:bla:ecinqu:v:53:y:2015:i:4:p:1765-1782

Ordering information: This journal article can be ordered from
https://ordering.onl ... s.aspx?ref=1465-7295

Access Statistics for this article

Economic Inquiry is currently edited by Tim Salmon

More articles in Economic Inquiry from Western Economic Association International Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().