Export Take-Offs and Acceleration: Unpacking Cross-Sector Linkages in the Evolution of Comparative Advantage

44 Pages Posted: 13 Sep 2017 Last revised: 16 Apr 2019

See all articles by Dany Bahar

Dany Bahar

Brookings Institution; Harvard University - Center for International Development (CID)

Ernesto Stein

Inter-American Development Bank (IDB)

Rodrigo Andres Wagner

UAI Business School ; Growth Lab - Harvard University (Center for Int. Development)

Samuel Rosenow

Inter-American Development Bank (IDB)

Multiple version iconThere are 2 versions of this paper

Date Written: September 18, 2018

Abstract

The transition into non-traditional export activities attracts important policy and academic attention. Using international trade data, we explore how alternative linkages relate to the take-off and acceleration of export industries. Concretely, we run a horse-race among alternative Marshallian linkages across sectors: input-output relations, technology and labor. Technology has a predictive power depending on the specification used. We consistently find, however, that export take-offs are more likely to occur in sectors that are upstream to already competitive export industries. Our findings, which are mostly driven by developing economies, are consistent with Albert Hirschman’s 60-years old view that the forces behind upstream linkages fueled the growth of new competitive industries in the developing world.

Keywords: relatedness, comparative advantage, patents, labor, upstream, downstream

JEL Classification: O14, O33, F14

Suggested Citation

Bahar, Dany and Stein, Ernesto Hugo and Wagner, Rodrigo Andres and Rosenow, Samuel, Export Take-Offs and Acceleration: Unpacking Cross-Sector Linkages in the Evolution of Comparative Advantage (September 18, 2018). Available at SSRN: https://ssrn.com/abstract=3035605 or http://dx.doi.org/10.2139/ssrn.3035605

Dany Bahar (Contact Author)

Brookings Institution ( email )

1775 Massachusetts Ave, NW
Washington, DC 20036
United States

Harvard University - Center for International Development (CID)

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Cambridge, MA 02138
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Ernesto Hugo Stein

Inter-American Development Bank (IDB) ( email )

1300 New York Avenue, NW
Research Department
Washington, DC 20577
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Rodrigo Andres Wagner

UAI Business School

Diagonal Las Torres 2700
Penalolen
Santiago
Chile

HOME PAGE: http://https://sites.google.com/site/rodrigoawagner

Growth Lab - Harvard University (Center for Int. Development) ( email )

79 John F. Kennedy Street
Cambridge, MA MA 02138
United States

Samuel Rosenow

Inter-American Development Bank (IDB) ( email )

1300 New York Avenue NW
Washington, DC 20577
United States

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