Determinants of export sophistication: Evidence from Monte Carlo simulations

Karen Poghosyan and Evžen Kočenda

No 360, Working Papers from Leibniz Institut für Ost- und Südosteuropaforschung (Institute for East and Southeast European Studies)

Abstract: In this paper we analyze the determinants of export sophistication based on a large panel dataset (2001–2014; 101 countries) and using different estimation algorithms. Using Monte Carlo simulations we evaluate the bias properties of estimators and show that GMM-type estimators outperform instrumental-variable and fixed-effects estimators. We show that when we apply the panel data over a different period and different set of countries, the findings of Hausmann et al. (2007) remain robust. We provide new evidence of export sophistication path-dependency and confirm that GDP per capita and the size of the economy exert significant and positive effects on export sophistication. Institutional quality positively affects only countries with low institutional quality. The high persistence of export sophistication is also a sign that export diversification promotes not only productivity and sustainable economic growth but also resistance during economic downturns.

Keywords: international trade; export sophistication; specialization; dynamic panel data; Monte Carlo simulation; panel data estimators (search for similar items in EconPapers)
JEL-codes: C52 C53 F14 F47 O19 (search for similar items in EconPapers)
Pages: 30
Date: 2016-10
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 (1)

Downloads: (external link)
http://www.dokumente.ios-regensburg.de/publikationen/wp/wp_360.pdf (application/pdf)

Related works:
Journal Article: Export Sophistication: A Dynamic Panel Data Approach (2018)
Working Paper: Export sophistication: A dynamic panel data approach (2017)
Working Paper: Equilibrium Real Exchange Rate Model of Armenia (2007)
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:ost:wpaper:360

Ordering information: This working paper can be ordered from

Access Statistics for this paper

More papers in Working Papers from Leibniz Institut für Ost- und Südosteuropaforschung (Institute for East and Southeast European Studies) Contact information at EDIRC.
Bibliographic data for series maintained by Kseniia Gatskova ( this e-mail address is bad, please contact ).