24 Pages Posted: 12 Apr 2006
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.
Keywords: Economics, International Economics, International Development, International Trade and Finance
Suggested Citation: Suggested Citation
Hausmann, Ricardo and Hwang, Jason and Rodrik, Dani, What You Export Matters (December 2005). KSG Working Paper No. RWP05-063. Available at SSRN: https://ssrn.com/abstract=896243 or http://dx.doi.org/10.2139/ssrn.896243