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Herfindahl-Hirschman Meets International Trade and Development Theories

Mitchell Kellman () and Yochanan Shachmurove ()
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Mitchell Kellman: Department of Economics, The City College of New York, and the Graduate Center of the City University of New York

No 50, Working Papers from Department of Applied Econometrics, Warsaw School of Economics

Abstract: To date there does not exist one a generally acceptable measure or index of Specialization in International Trade. Development Economic Theory embraces the expectation of a direct relationship between economic growth and export diversification. However, International Trade Theory supports the association of export expansion with increased specialization. The paper proposes a Specialization Index and applies it to six small developing countries: Singapore, South Korea, Malaysia, Mexico, Tunisia and Morocco, during the years of their take offs. Additionally, the index is applied to the two large fast growing economies of Chine and India.

Keywords: Trade Specialization Indices; Development Theory; Developing Country Export Compositions; International Trade Theory; Trade in Manufactures; Trade and Transformation; Singapore; South Korea; Malaysia; Mexico; Tunisia; Morocco; China; India. (search for similar items in EconPapers)
JEL-codes: O1 O14 F1 F14 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dev and nep-int
Date: 2011-01-23
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