27 Pages Posted: 20 Apr 2006
Date Written: January 2006
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: Specialization, productivity, growth
JEL Classification: F1, O4
Suggested Citation: Suggested Citation
Rodrik, Dani and Hausmann, Ricardo and Hwang, Jason, What You Export Matters (January 2006). CEPR Discussion Paper No. 5444. Available at SSRN: https://ssrn.com/abstract=897924
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