Trade partner diversification and growth: How trade links matter

Önder, Ali Sina; Yilmazkuday, Hakan

doi:10.1016/j.jmacro.2016.10.003

Cited by 19 publications

(9 citation statements)

References 53 publications

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“…For pharmaceutical firms, developing related products contributes to long-term firm performance as well as short-term firm performance. In general, a firm's diversification strategy is recommended within its manageable capacity because once the firm extensively focuses its diversification on related products, it may lose out on exploring new opportunities (Önder & Yilmazkuday, 2016;Palich et al, 2000;Pierce & Aguinis, 2013). For pharmaceutical firms, however, we found that RPD is beneficial even in the long term.…”

Section: Discussionmentioning

confidence: 81%

Related and unrelated product diversification and collaboration strategies: Comparison between the pharmaceutical and biopharmaceutical industries

Kim

Lee

Hwang

et al. 2022

J of Product Innov Manag

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In pharmaceutical and biopharmaceutical industries, developing and commercializing products require great investments and intensive clinical trials. With regard to managing the risk and uncertainty of such product development, especially given the low success rates, product diversification and collaboration strategies can be instrumental for firms. Especially, the differences in product development complexity and market condition among industries require more case-specific implications due to the absence of a universally applicable strategy, even in these two similar industries. To date, little is known or discussed regard- | 561Kim et al.

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Section: Discussionmentioning

confidence: 81%

Related and unrelated product diversification and collaboration strategies: Comparison between the pharmaceutical and biopharmaceutical industries

Kim

Lee

Hwang

et al. 2022

J of Product Innov Manag

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“…In this vein, ED is documented with several impacts (Le et al, 2020;Osakwe et al, 2018). For instance, Önder and Yilmazkuday (2016) argue that diversification in trading partners has a positive impact on economic growth. Egger and Etzel (2012) add that trade openness with a fully symmetric partner country could induce higher employment and welfare.…”

Section: Export Diversification and Economic Fluctuationsmentioning

confidence: 99%

The Dynamics of Export Diversification, Economic Complexity and Economic Growth Cycles: Global Evidence

Nguyen

Thanh

2020

Foreign Trade Review

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This article investigates the dynamics of export diversification, economic complexity and economic growth cycles. By applying several econometric techniques for estimating a panel data set of 70 economies over the period from 1996 to 2014, the results have been threefold. First, there is Granger bi-directional causality between economic complexity and export diversification, while unidirectional Granger causality exists from economic complexity to economic growth cycles. Second, the result attained from the three-stage least squares estimate demonstrates that economic complexity and export diversification significantly impact each other. Notably, the effect of economic complexity is found to be negative on economic growth cycles, implying that the dynamics of economic complexity and export diversification generate a reduction in economic fluctuations. Third, by splitting the sample into two subsamples (i.e., 32 high-income economies and 38 low- and middle-income economies) and two sub-periods (i.e., 1994–2007 and 2008–2014), the results show that the positive dynamics between economic complexity and export diversification are consistent with income levels and time periods. However, the negative impact of economic complexity on economic growth cycles is statistically significant only for the group of high-income economies and during the 1996–2007 period. These findings are checked by several estimators and different proxies of export diversification, economic growth cycles and economic complexity. JEL: F13, F14, O19, E32

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“…Were (2015) used the panel data technique to investigate the effect of trade on economic growth and investment in least developed economies, while Eberhard-Ruiz and Moradi (2019) used satellite imagery of lights emanating from the Earth at night. These estimation techniques employed by different scholars can be broadly classified into the threshold model (Onder and Yilmazkuday, 2016), linear regression (Ghoshal, 2015), satellite imagery of lights emanating from earth at night (Eberhard-Ruiz and Moradi, 2019) and panel technique (Zahonogo, 2016;Kim et al, 2016).…”

Section: Review Of Related Literature 21 Theoretical Reviewmentioning

confidence: 99%

Does regional trade promote economic growth? Evidence from Economic Community of West African States (ECOWAS)

Okoro¹,

Ujunwa

Umar³

et al. 2020

JED

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PurposeThis paper examines the impact of regional and non-regional trade on economic growth using annual data from Economic Community of West African States (ECOWAS) member countries for the period 2007 to 2017.Design/methodology/approachTrade data were decomposed into regional (trade among ECOWAS Member States) and non-regional (trade between ECOWAS Member States and the rest of the world). We used the dynamic system GMM to estimate the models and introduced exchange rate, unemployment rate, population growth and gross capital formation as controlled variables.FindingsThe results revealed that the estimated coefficient of ECOWAS regional trade is statistically significant and positive in predicting growth, while the non-regional trade coefficient is negative and not statistically significant in predicting growth. Other predictors of growth introduced into the model as controlled variables, such as exchange rate, unemployment rate, population growth and gross capital formation, displayed mixed results. More importantly, population growth, unemployment and exchange rate depreciation hurt economic growth, while gross capital formation promotes economic growth.Practical implicationsThe findings provide strong support in favour of the Krugman (1991) hypothesis that regional trade agreements (RTAs) are a better alternative to global trade.Originality/valueOur decision to disaggregate ECOWAS trade is unique and influenced largely by the objective of the study, which is to establish the type of ECOWAS trade that is a good predictor of growth. The evidence from our findings support the theory that RTAs are a better catalyst to economic growth.

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Trade partner diversification and growth: How trade links matter

Abstract: We analyze the effects of a country's export connections on its income growth using

Cited by 19 publications

References 53 publications

Related and unrelated product diversification and collaboration strategies: Comparison between the pharmaceutical and biopharmaceutical industries

Related and unrelated product diversification and collaboration strategies: Comparison between the pharmaceutical and biopharmaceutical industries

The Dynamics of Export Diversification, Economic Complexity and Economic Growth Cycles: Global Evidence

Does regional trade promote economic growth? Evidence from Economic Community of West African States (ECOWAS)

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