Diversification and Specialization Paradox in Developing Country Trade

11 Pages Posted: 14 Apr 2011

See all articles by Mitchell H. Kellman

Mitchell H. Kellman

City University of New York, CUNY City College of New York - Department of Economics

Yochanan Shachmurove

City University of New York, CUNY City College of New York - Department of Economics; The University of Pennsylvania - Department of Economics

Abstract

This paper examines and resolves a puzzling issue associated with less developed country (LDC) export compositions. Since the newly industrialized country (NIC) takeoff during the early 1970s, LDC exports have involved an increasingly broader and diversified export base. Yet trade theories, both "old" that focus on classic comparative advantage, and "new" which rely on scale economies, lead to expectations of growing specialization as a concomitant of LDC takeoff. This study examines periods of rapid growth and structural transformation of trade for a representative group of LDCs covering a wide geographic and temporal sample.

Suggested Citation

Kellman, Mitchell H. and Shachmurove, Yochanan, Diversification and Specialization Paradox in Developing Country Trade. Review of Development Economics, Vol. 15, No. 2, pp. 212-222, 2011. Available at SSRN: https://ssrn.com/abstract=1809367 or http://dx.doi.org/10.1111/j.1467-9361.2011.00603.x

Mitchell H. Kellman

City University of New York, CUNY City College of New York - Department of Economics ( email )

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Yochanan Shachmurove

City University of New York, CUNY City College of New York - Department of Economics ( email )

160 Convent Avenue
New York, NY 10031
United States
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The University of Pennsylvania - Department of Economics ( email )

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United States
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