Dynamics and determinants of export diversification in Brazil from 2003 to 2013

Abstract

Brazil was successful in diversifying its export package from the 1960s to the beginning of the twenty-first century. However, this performance has been more ambiguous over the last decade. This study explores the literature on the impact of export diversification on economic growth and the determinants of successful diversification. More specifically, it analyzes the dynamics of Brazilian export diversification between 2003 and 2013. The results suggest that, overall, exports momentarily concentrated in 2004, 2008 and 2012, but rejoiced from a diversification spike in 2005. Southern and Southeastern states are found to have more diversified exports, but Central-West and Northeastern states have experienced higher diversification rates since 2006. Via a dynamic panel data analysis, using System General Methods of Moments estimation method, including all Brazilian states, past diversification performances, education, patents per capita, credits and public investments are found to be significant determinants of Brazilian export diversification.

The role of Exchange Rates in non-oil export activity: evidence from Azerbaijan

“…Also, a further literature review proves the different nature of the qualitative connection and the move toward the diversification of exports to the economy, depending on the level of diversity of the exported goods, the level of development of the country's economy, and the characteristics of the resource model of the national economy and the diversification of non-oil exports. Besides, a prevailing number of scientific papers discusses the perspective of a certain indicator of international trade and diversification (Hinlo & Arranguez, 2017;Lee & Yu, 2019;Del Rosal, 2019;Mania & Rieber, 2019;De Oliveira, Jegu & Santos, 2020;Kim, 2019). Given the existing inaccuracies and controversial aspects of the methodology, within the framework of this study an attempt was made to substantiate the impact of export diversification.…”

“…Recently, the study of export diversification and its advantages over specialization has become relevant in terms of leveling the risks of fluctuations in the national economy under the impact of external shocks resulting from the portfolio effect (De Oliveira, Jegu & Santos, 2020). Thus, it is interesting to research the diversification of exports and their impact on the economies of countries with resourceoriented exports.…”

“…A variety of approaches can be found in the current literature on the toolkit for assessing the impact of export diversification (Le et al, 2020;Rath & Akram, 2017;Shadab, 2020;Hinlo & Arranguez, 2017;Mania & Rieber, 2019;De Oliveira, Jegu & Santos, 2020). Most of them described causal relationships based on the linear connection between economic diversification and efficiency (Rath & Akram, 2017;Shadab, 2020;Hinlo & Arranguez, 2017).…”

Digitization of Taxation System: Content Analysis of Strategic and Experts Perspective

“…The study concluded that interest rate stability enhances the countries' export performance. Oliveira et al (2020) analysed export diversification and its factors for Brazil's various economic regions from 2003 to 2013 by employing the generalised method of moments. Findings showed that the exports are more diversified in the Southeastern states compared to the Northeastern region, and divergence in the Centralwest region started in 2006.…”

Investigating Export Determinants: A Time Series Evidence From Canada

“…It is suggested that policies aiming to take full advantage of trade agreements and reduced costs may be supportive in endorsing exports. Oliveira et al (2020) explored export divergence and its determinants for different sectors of the Brazilian economy between 2003 and 2013 by using general methods of moments. Results found that the Southeastern states and the southern region have much more diversified exports than the Northeastern states, and in the Central-West region diversification started in 2006.…”