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Export quality and economic growth in the 2000s: new empirical evidence

Gilberto Libânio, Sueli Moro and Anna Carolina Londe
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Gilberto Libânio: Cedeplar-UFMG
Sueli Moro: Cedeplar-UFMG
Anna Carolina Londe: Cedeplar-UFMG

No 543, Textos para Discussão Cedeplar-UFMG from Cedeplar, Universidade Federal de Minas Gerais

Abstract: This paper examines the relationship between composition of exports and economic growth for a large set of countries, between 2000 and 2013, following the assumption that the technological structure of exports has important implications for economic development. The paper builds an index of exports quality, based on the classification by technological intensity: primary products, resource-based manufactures, low-tech, medium-tech and high-tech manufactures. Then, we estimate the relationship between quality of exports and economic growth by using panel data analysis. The results suggest that the export quality index is highly significant to explain economic growth. Between 2000 and 2008, booming demand for commodities benefited exporters of primary products and resource-based manufactures, and lower export quality is associated with higher rates of economic growth. For 2009-2013, in turn, results confirm what is expected by theory and suggest that export structures with higher technological content have brought about positive effects on economic performance.

Keywords: exports; technology; economic growth; panel data. (search for similar items in EconPapers)
JEL-codes: O11 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-fdg and nep-int
Date: 2016-12
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