What You Export Matters
25 Pages Posted: 13 Apr 2006 Last revised: 14 Jul 2010
Date Written: December 2005
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.
Suggested Citation: Suggested Citation