Export Diversification and Sources of Growth in Emerging Market Economies

Vaseem Akram and Badri Rath
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Vaseem Akram: Indian Institute of Technology Hyderabad, Hyderabad, Telangana, India

Global Economy Journal (GEJ), 2017, vol. 17, issue 3, 1-13

Abstract: We examine the impact of export diversification on total factor productivity (TFP) growth in case of 28 emerging market economies (EMEs) using annual data from 1995 to 2014. The results indicate that export diversification has significant positive impact on TFP growth. Further the results show that the TFP growth contributes more towards output growth as compared to factor accumulation in case of highly export diversified countries. The policy suggests that the emerging countries should focus more on export diversification-led-growth via productivity channel.

Keywords: export diversification; total factor productivity; financial development; human capital; panel unit root; dynamic panel data model; EMEs (search for similar items in EconPapers)
Date: 2017
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DOI: 10.1142/GEJ-2017-0018

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