Download This PaperWhat You Export Matters
25 Pages Posted: 13 Apr 2006 Last revised: 14 Jul 2022
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What You Export Matters
Date Written: December 2005
Abstract
When local cost discovery generates knowledge spillovers, specialization patterns become partly indeterminate and the mix of goods that a country produces may have important implications for economic growth. We demonstrate this proposition formally and adduce some empirical support for it. We construct an index of the "income level of a country's exports," document its properties, and show that it predicts subsequent economic growth.
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