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Patterns of export diversification in developing countries: intensive and extensive margins

Martha Denisse Pierola
Authors registered in the RePEc Author Service: Alberto AMURGO PACHECO ()

No 20-2007, IHEID Working Papers from Economics Section, The Graduate Institute of International Studies

Abstract: This paper uses highly disaggregated trade data to investigate geographic and product diversification patterns across a group of developing nations for the period from 1990 to 2005. The econometric investigation shows that the gravity equation fits the observed differences in diversification across nations. We find that exports at the intensive margin account for the most important share of overall trade growth. At the extensive margin, geographic diversification is more important than product diversification, especially for developing countries. Taking part in FTAs, thereby reducing trade costs, and trading with countries in the North are also found to have positive impacts on export diversification for developing countries.

Keywords: export diversification; intensive margin; extensive margin (search for similar items in EconPapers)
JEL-codes: F13 F14 F15 (search for similar items in EconPapers)
Pages: 34
Date: 2007-05, Revised 2007-07
New Economics Papers: this item is included in nep-int
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