The Birth and Growth of New Export Clusters: Which Mechanisms Drive Diversification?
Dany Bahar (),
Ernesto Stein and
No 86a, CID Working Papers from Center for International Development at Harvard University
Export diversification is associated with economic growth and development. Our paper explores competing mechanisms that mediate the emergence and growth of export products based on their economic relatedness to pre-existing exports. Our innovation is to simultaneously consider supply factors like labor, sourcing and technology; as well as demand factors like industry specific customer-linkages in a global setting. We find that, while technology and workforce similarity explain emergence and growth, pre-existing downstream industries remain a robust predictor of diversification, especially for jump starting new exports in developing countries. Our global stylized fact generalizes Javorcik’s (2004) view that spillovers are more likely in backward linkages.
Keywords: comparative advantage; exports; relatedness; spillovers; R&D; patents; labor; upstream; downstream (search for similar items in EconPapers)
JEL-codes: O14 O33 F14 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cse, nep-ino and nep-int
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Persistent link: https://EconPapers.repec.org/RePEc:cid:wpfacu:86a
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