Export diversification and income differences reconsidered: The extensive product margin in theory and application

Mau, Karsten

doi:10.1007/s10290-015-0241-x

Cited by 48 publications

(59 citation statements)

References 33 publications

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“…Klinger and Lederman (2006), Cadot et al (2011) confirmed this stylized fact for the case of export diversification. Parteka (2010) and Mau (2016), on the contrary, provided evidence against re-specialization at the high level of economic development. So, the debate on this issue is far from being over, and one may propose to dig deeper into the sources of export diversification in order to resolve the issue.…”

Section: Motivationmentioning

confidence: 99%

Structural Transformation and Quality Ladders: Solving the 'Theil's Cube'

Gnidchenko

2019

SSRN Journal

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We propose a decomposition of weighted Theil index of export concentration into the quantity-and quality-driven terms and calculate the proposed components for 5038 product groups and 120 countries. We link our findings to the debate on the role of quality upgrading in structural transformation. The results do not support the idea that climbing quality ladders (or quality upgrading within the actually exported products) is the best way to proceed with structural transformation: for most countries, the share of the quality-driven component of weighted Theil index doesn't exceed 20 per cent.JEL Classification: F10, F14, L16, C43. . We acknowledge helpful comments from the anonymous reviewer that stimulated to outline the methodology more precisely. prices, due to the "standardized" nature of the product. A good example is unwrought nickel (see Fig. A2). For this product, Russia is unable to increase exports much even after climbing at the very top of the quality ladder. Rather, the country should move to nearby products that are more complex (nickel tubes, pipes, etc.). Fig. A2. Weighted and unweighted quality laddersfor unwrought nickel (HS 750210)

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Section: Motivationmentioning

confidence: 99%

Structural Transformation and Quality Ladders: Solving the 'Theil's Cube'

Gnidchenko

2019

SSRN Journal

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“…In order to take into account the highly persistent level of specialization that characterizes most of developed and developing countries, the most recent literature at the time of writing (e.g., Mau, ) investigates the relationship between GDP per capita and trade specialization following a dynamic approach. Here we point out that, in the presence of cross‐country interdependence, standard panel estimators are likely to be biased and inconsistent (Elhorst, ).…”

Section: Modeling Export Diversificationmentioning

confidence: 99%

“…Given that we are interested in the links between countries and dependence between their trade structures, we choose to assess each country's export composition with respect to the overall trend (referring each country's degree of export diversity to other countries). Hence, following the empirical literature on the topic (De Benedictis et al, ; Parteka & Tamberi, ; Mau, ), we employ relative measures of diversification. Specifically, the Relative Theil entropy index ( RelTheil ) is our preferred measure and is computed for each time period as:

R e l T h e i l_{i} = \sum_{j = 1}^{m} true(s_{i j} \cdot \ln \frac{s_{i j}}{w_{j}} true), R e l T h e i l_{i} \in true〈 0, \ln true(m true) true〉,

where

s_{i j} = \frac{x_{i j}}{\sum_{j} x_{i j}}

are the shares of the exports ( x ) of product j ( j = 1,2,…, m ) in the total exports of country i ( i = 1,2,…., n ) and

w_{j} = \frac{\sum_{i} x_{i j}}{\sum_{i} \sum_{j} x_{i j}}

is the average share of product j in total world exports…”

Section: Data and Variablesmentioning

confidence: 99%

“…Diversification paths during the process of economic development is a topic that has attracted the attention of many economists (Imbs & Wacziarg, ; Koren & Tenreyro, ; Klinger & Lederman, ; Cadot, Carrère, & Strauss‐Kahn, ; Minondo, ; Parteka & Tamberi, ; Mau, ). Diversifying exports is one of the main strategies that a country may follow to reduce uncertainty (Di Giovanni & Levchenko, ; Koren & Tenreyro, ).…”

Section: Introductionmentioning

confidence: 99%

“…Several scholars (De Benedictis, Gallegati, & Tamberi, ; Parteka, ; Parteka & Tamberi, ), however, show skepticism about the robustness of these patterns, correcting conventional, absolute measures of product diversity and find a nonlinear but monotonically decreasing trend reflecting progressive relative de‐specialization along the path of economic growth. More recently, Mau () has stressed that the above‐cited nonmonotonic hump‐shaped pattern is mainly due to an omitted log‐transformation of the income variable, as well as sample selection bias and lack of control variables.…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Export diversification and economic development: A dynamic spatial data analysis

Basile

Parteka

Pittiglio

2017

Rev International Economics

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This paper contributes to the empirical literature on the relationship between "export variety" (export diversification) and economic development by relaxing the assumption of crosscountry independence and allowing for spatial diffusion of shocks in observed and unobserved factors. Export variety is measured for a balanced panel of 114 countries (1992-2012) using very detailed information on their exports (HS 6-digit product level). The estimation results of a dynamic spatial panel data model confirm the relevance of spatial network effects in export diversification: indirect effects (spatial spillovers) strongly reinforce direct effects, while spatial proximity to large countries accelerates the diversification process. In about 10 years the whole space-time diffusion of the diversification shock is widely completed. We reveal that the longrun spillover impact from European countries is much higher than from other countries such as the United States, Japan, or the BRICS (Brazil,

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