Export Sector Dynamics and Domestic Growth: The Case of Colombia

Sheila Amin Gutiérrez de Piñeres and Michael Ferrantino

Review of Development Economics, 1999, vol. 3, issue 3, 268-280

Abstract: Analyses of Colombian data have generally failed to confirm the hypothesis of export‐led growth. This paper generates several measures of export diversification and structural change in exports, and argues that these measures are useful in assessing growth externalities generated by the export sector. In a simultaneous‐equations framework, increases in the rate of export structural change are associated with accelerated Colombian GDP growth. Export diversification, by contrast, is not a source of economic growth, and the reduced‐form relationship between aggregate lagged export growth and GDP growth is weak.

Date: 1999
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