Export Similarity Networks and Proximity Control Methods for Comparative Case Studies

Gathani Sachin and Dimitri Stoelinga
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Gathani Sachin: Laterite Ltd, Kigali, Rwanda

Journal of Globalization and Development, 2013, vol. 3, issue 2, 1-39

Abstract: In the paper we explore just how similar the growth trajectory of countries with similar exports is, and exploit this similarity to conduct counter-factual analysis. We find that a synthetic combination of a country’s most similar exporters often perfectly matches economic growth in the reference country over a long period of time. We call this method Proximity Controls and apply it to the case of Indonesia’s 1997 financial and political crisis. We also highlight applications to the cases of political instability in Ivory Coast, election violence in Kenya and Greece’s debt crisis.

Date: 2013
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DOI: 10.1515/jgd-2012-0029

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