Patterns of Export Diversification in Developing Countries: Intensive and Extensive Margins

34 Pages Posted: 20 Apr 2016

See all articles by Alberto Amurgo-Pacheco

Alberto Amurgo-Pacheco

Graduate Institute of International and Development Studies (IHEID)

Martha Denisse Pierola

World Bank - Development Research Group (DECRG)

Date Written: January 1, 2008

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. The analysis shows 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 free trade agreements, 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: Economic Theory & Research, Free Trade, Trade Policy, Emerging Markets, Achieving Shared Growth

Suggested Citation

Amurgo-Pacheco, Alberto and Pierola, Martha Denisse, Patterns of Export Diversification in Developing Countries: Intensive and Extensive Margins (January 1, 2008). World Bank Policy Research Working Paper Series, Vol. , pp. -, 2008. Available at SSRN: https://ssrn.com/abstract=1082648

Alberto Amurgo-Pacheco (Contact Author)

Graduate Institute of International and Development Studies (IHEID) ( email )

PO Box 136
Geneva, CH-1211
Switzerland

Martha Denisse Pierola

World Bank - Development Research Group (DECRG) ( email )

1818 H. Street N.W.
MSN3-311
Washington, DC 20433
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
420
Abstract Views
1,746
rank
68,206
PlumX Metrics