Trade Partner Diversification and Growth: How Trade Links Matter

Ali Onder and Hakan Yilmazkuday

No 1606, Working Papers from Florida International University, Department of Economics

Abstract: We analyze the effects of a country's export connections on its income growth using Trade Partner Diversification (TPD) measures that capture the country's relative importance in the international trade network. On top of the standard trade openness measures, TPD measures are shown to enter growth regressions positively and significantly, where one standard deviation increase in TPD is associated with a 1 to 1.5 percentage point increase in the annual growth rate. Threshold analyses show that TPD measures are positively and significantly correlated with growth in countries that have low financial depth, high inflation, low levels of human capital, or high trade openness.

Keywords: Trade; Economic Growth; Export Networks; Thresholds; Cross-Country Analysis; Trade Partner Diversification (search for similar items in EconPapers)
JEL-codes: F13 G20 O19 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2016-11
New Economics Papers: this item is included in nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
https://economics.fiu.edu/research/pdfs/2016_working_papers/1606.pdf First version, 2016 (application/pdf)

Related works:
Journal Article: Trade partner diversification and growth: How trade links matter (2016)
Working Paper: Trade partner diversification and growth: how trade links matter (2014)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fiu:wpaper:1606

Access Statistics for this paper

More papers in Working Papers from Florida International University, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Sheng Guo ().