Advertisement

Export Diversification, International Trade, and Economic Growth: A Survey of the Literature

  • Juan Felipe Mejía
Chapter
Part of the Contributions to Economics book series (CE)

Abstract

Since the very beginning of the 1990s, Colombian policy-makers introduced a new approach towards the national economic development: As stated by Ocampo and Villar (1992), the so-called “Modernization and Internationalization Program” was officially launched, encouraging national industries to face competition in the international markets. Just in the same direction of other developing nations, this initiative has been vigorously defended ever since, based on an expected positive correlation between economic growth and an increased openness of the country to foreign trade.

Keywords

Total Factor Productivity Free Trade Comparative Advantage Trade Policy Trade Theory 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

References

  1. Acemoglu D, Zilibotti F (1997) Was prometheus unbound by chance? risk, diversification, and growth. J Polit Econ 105(4):709–751CrossRefGoogle Scholar
  2. Aghion P, Howitt P (1998) Endogenous growth. MIT Press, Cambridge, MAGoogle Scholar
  3. Agosin MR (1999) Trade and growth in Chile. CEPAL Rev 68:79–100Google Scholar
  4. Agosin MR (2006) Trade and growth: why Asia grows faster than Latin America, vol 1. Inter-American Development Bank, Washington DCGoogle Scholar
  5. Ali R, Alwang J, Siegel PB (1991) Is export diversification the best way to achieve export growth and stability? A look at three African countries. Pollcy, Research, and External Affairs, Working Papers, Agriculture Operations, Agriculture Operations Division, Southern Africa Department, Africa Regional Office, 1–44Google Scholar
  6. Al-Marhubi F (2000) Export diversification and growth: an empirical investigation. Appl Econ Lett 7(9):559–562CrossRefGoogle Scholar
  7. Gutiérrez A, de Piñeres S, Ferrantino M (1997b) Export diversification trends: some comparisons for Latin America. Int Exec 39(4):465–477CrossRefGoogle Scholar
  8. Balassa B (1971) The structure of protection in developing countries. Johns Hopkins University Press, BaltimoreGoogle Scholar
  9. Balassa B (1981) The newly industrializing developing countries after the oil crisis. World Bank Reprint Series, (190):142-194. http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2001/01/24/000178830_98101903354510/Rendered/PDF/multi_page.pdf
  10. Balassa B (1985) Exports, policy choices, and economic growth in developing countries after the 1973 oil shock. J Dev Econ 18(1):23–35, http://www.elsevier.com/wps/find/journaldescription.cws_home/505546/description#description CrossRefGoogle Scholar
  11. Baldwin RE (1992) Measuring dynamic gains from trade. J Polit Econ 100(11):162–174CrossRefGoogle Scholar
  12. Baldwin RE, Forslid R (2000) Trade liberalisation and endogenous growth: a q-theory approach. J Int Econ 50(2):497–517, http://www.elsevier.com/wps/find/journaldescription.cws_home/505552/description#description CrossRefGoogle Scholar
  13. Barkai H (1969) A formal outline of a smithian growth model. Q J Econ 83(3):396–414, http://www.mitpressjournals.org/loi/qjec CrossRefGoogle Scholar
  14. Barro RJ, Sala-i-Martin X (1995) Economic growth. McGraw-Hill, New YorkGoogle Scholar
  15. Bebczuk RN, Berrettoni ND (2006) Explaining export diversification: an empirical analysis. Unpublished manuscript. Retrieved 10 Dec 2009, from http://www.depeco.econo.unlp.edu.ar/doctrab/doc65.pdf
  16. Ben Hammouda H, Karingi SN, Njuguna AE, Sadni-Jallab M (2006) Diversification: towards a new paradigm for Africa’s development, vol 35. United Nations Economic Commission for AfricaGoogle Scholar
  17. Ben-David D (1993) Equalizing exchange: trade liberalization and income convergence. Q J Econ 108(3):653–679CrossRefGoogle Scholar
  18. Bernard AB, Bradford Jensen J (1999) Exceptional exporter performance: cause, effect, or both? J Int Econ 47(1):1–25. doi: 10.1016/S0022-1996(98)00027-0 CrossRefGoogle Scholar
  19. Berthélemy J, Söderling L (1999) The role of capital accumulation, adjustment and structural change for economic take-off: empirical evidence from African growth episodes. Technical Papers 150:4–38Google Scholar
  20. Bertinelli L, Salins V, Strobl E (2006) Export diversification and price uncertainty in sub-saharan Africa and other developing countries: a portfolio theory approach. Unpublished manuscript.Google Scholar
  21. Bhagwati J (1978) Anatomy and consequences of exchange control regimes. Publishing Company for NBER, CambridgeGoogle Scholar
  22. Bhagwati J (1958a) Immiserizing growth: a geometrical note. Rev Econ Stud 25(3):201–205CrossRefGoogle Scholar
  23. Bhagwati J (1958b) International trade and economic expansion. Am Econ Rev 48(5):941–953Google Scholar
  24. Blomstrom M, Kokko A (2001) Foreign direct investment and spillovers of technology. Int J Technol Manage 22(5–6):435–454CrossRefGoogle Scholar
  25. Bonaglia F, Fukasaku K (2003) Export diversification in low-income countries: an international challenge after doha. OECD Development Centre Working Papers, (209) http://dx.doi.org/10.1787/043266813306
  26. Chacholiades M (1990) International economics. McGraw-Hill, New YorkGoogle Scholar
  27. Clerides SK, Lach S, Tybout JR (1998) Is learning by exporting important? micro-dynamic evidence from colombia, mexico, and morocco. Q J Econ 113(3):903–947CrossRefGoogle Scholar
  28. Cramer C (1999) Can Africa industrialize by processing primary commodities? The case of Mozambican cashew nuts. World Dev 27(7):1247–1266. doi: 10.1016/S0305-750X(99)00053-4 CrossRefGoogle Scholar
  29. Dollar D (1986) Technological innovation, capital mobility, and the product cycle in north-south trade. Am Econ Rev 76(1):177–190Google Scholar
  30. Dollar D (1992) Outward-oriented developing economies really do grow more rapidly: evidence from 95 LDCs, 1976–1985. Econ Dev Cult Change 40(3):523–544CrossRefGoogle Scholar
  31. Easterly W, Levine R (2002) Tropics, germs, and crops: how endowments influence economic development. Unpublished manuscriptGoogle Scholar
  32. Edwards S (1992) Trade orientation, distortions and growth in developing countries. J Dev Econ 39(1):31–57, http://www.elsevier.com/wps/find/journaldescription.cws_home/505546/description#description CrossRefGoogle Scholar
  33. Edwards S (1993) Openness, trade liberalization, and growth in developing countries. J Econ Lit 31(3):1358–1393, http://www.aeaweb.org/jel/ Google Scholar
  34. Edwards S (1998) Openness, productivity and growth: what do we really know? Econ J 108(447):383–398CrossRefGoogle Scholar
  35. Esfahani HS (1991) Exports, imports, and economic growth in semi-industrialized countries. J Dev Econ 35(1):93–116CrossRefGoogle Scholar
  36. Feder G (1983) On exports and economic growth. J Dev Econ 12(1–2):59–73. doi: 10.1016/0304-3878(83)90031-7 CrossRefGoogle Scholar
  37. Feenstra RC, Madani D, Yang T, Liang C (1998) Testing endogenous growth in South Korea and Taiwan. NBER Working Paper Series 6028:1–25Google Scholar
  38. Feenstra RC, Taylor AM (2008) International economics, 1st edn. Worth, New YorkGoogle Scholar
  39. Frankel JA, Romer D (1999) Does trade cause growth? Am Econ Rev 89(3):379–399CrossRefGoogle Scholar
  40. Grossman GM, Helpman E (1991) Innovation and growth in the global economy. MIT Press, Cambridge, MAGoogle Scholar
  41. Grubel HG, Lloyd P (1975) Intra-industry trade: the theory and measurement of international trade in dfferentiated products. MacMillan, LondonGoogle Scholar
  42. Harding T, Javorcik BS (2007) Note on the effect of FDI on export diversification in central and eastern europe. Unpublished manuscript. Retrieved 7 Dec 2009, from http://siteresources.worldbank.org/INTEXPCOMNET/Resources/Javorcik,_Note_on_the_Effect_of_FDI_on_Export_Diversification_in_Central_and_Eastern_Europe.pdf
  43. Hausmann R, Hwang J, Rodrik D (2006) What you export matters. Discussion Pap Ser 5444:1–14Google Scholar
  44. Helleiner GK (1986) Outward orientation, import instability and african economic growth: an empirical investigation. In: Lall S, Stewart F (eds) Theory and reality in development: essays in honour of Paul Streeten. Macmillan, London, pp 139–153Google Scholar
  45. Herzer D, Nowak-Lehmann F (2004) Export diversification, externalities and growth. Discussion Papers, (99)Google Scholar
  46. Howitt P (2000) Endogenous growth and cross-country income differences. Am Econ Rev 90(4):829–846CrossRefGoogle Scholar
  47. Imbs J, Wacziarg R (2003) Stages of diversification. Am Econ Rev 93(1):63–86CrossRefGoogle Scholar
  48. Irwin DA (2000) How did the United States become a net exporter of manufactured goods? NBER Working Paper Series, (7638)Google Scholar
  49. Kavoussi RM (1984) Export expansion and economic growth: further empirical evidence. J Dev Econ 14(1):241–250. doi: 10.1016/0304-3878(84)90052-X CrossRefGoogle Scholar
  50. Keller W (2000a) Do trade patterns and technology flows affect productivity growth? World Bank Econ Rev 14(1):17–47CrossRefGoogle Scholar
  51. Keller W (2000) Geographic localization of international technology diffussion. NBER Working Paper Series (7509). http://www.nber.org/papers/w7509
  52. Kohli A (2009) States and economic development. Brazilian J Polit Econ 29(2):212–227Google Scholar
  53. Kohli I, Singh N (1989) Exports and growth: critical minimum effort and diminishing returns. J Dev Econ 30(2):391–400. doi: 10.1016/0304-3878(89)90011-4 CrossRefGoogle Scholar
  54. Krishna P, Levchenko AA (2009) Comparative advantage, complexity and volatility. NBER Working Paper Series 14965:1–29Google Scholar
  55. Krugman PR, Obstfeld M (2006) International economics: theory and policy, 7th edn. Pearson Addison Wesley, BostonGoogle Scholar
  56. Lederman D, Maloney WF (2003) Trade structure and growth. Policy Research Working Paper (3025)Google Scholar
  57. Lee HY, Ricci LA, Rigobon R (2004) Once again: is openness good for growth? NBER Working Paper Series (10749):1-28. http://www.nber.org/papers/w10749
  58. Lee J (1995) Capital goods imports and long-run growth. J Dev Econ 48(1):91–110. doi: 10.1016/0304-3878(95)00015-1 CrossRefGoogle Scholar
  59. Leibenstein H (1966) Allocative efficiency vs. "X-efficiency". Am Econ Rev 56(3):392–415, http://www.jstor.org/stable/pdfplus/1823775.pdf Google Scholar
  60. Levchenko AA, di Giovanni J (2006) Openness, volatility and the risk content of exports. Paper presented at the (86)Google Scholar
  61. Levchenko AA (2007) Institutional quality and international trade. Rev Econ Stud 74(3):791–819, http://www.blackwellpublishing.com/journal.asp?ref=0034-6527 CrossRefGoogle Scholar
  62. Levine R, Renelt D (1992) A sensitivity analysis of cross-country growth regressions. Am Econ Rev 82(4):942–963, http://www.aeaweb.org/aer/ Google Scholar
  63. Love J (1983) Concentration, diversification and earnings instability: some evidence on developing countries' exports of manufactures and primary products. World Dev 11(9):787–793. doi: 10.1016/0305-750X(83)90091-8 CrossRefGoogle Scholar
  64. MacDonald JM (1994) Does import competition force efficient production? Rev Econ Stat 76(4):721–727CrossRefGoogle Scholar
  65. Madsen JB (2009) Trade barriers, openness, and economic growth. South Econ J 76(2):397–418, http://www.utc.edu/Outreach/SouthernEconomicAssociation/southern-economic-journal.html CrossRefGoogle Scholar
  66. Maloney WF (2002) Missed opportunities: innovation and resource-based growth in Latin America. World Bank Policy Research Working Paper 2935:1–40Google Scholar
  67. Manzano O, Rigobon R (2001) Resource curse or debt overhang. NBER Working Paper Series (8390)Google Scholar
  68. Martin W, Mitra D (2001) Productivity growth and convergence in agriculture versus manufacturing. Econ Dev Cult Change 49(2):403–422CrossRefGoogle Scholar
  69. Matsuyama K (1992) Agricultural productivity, comparative advantage, and economic growth. J Econ Theory 58(2):317–334. doi: 10.1016/0022-0531(92)90057-O CrossRefGoogle Scholar
  70. Mazumdar J (1996) Do static gains from trade lead to medium-run growth? J Polit Econ 104(6):1328–1337CrossRefGoogle Scholar
  71. Melitz MJ (2003) The impact of trade on intra-industry reallocations and aggregate industry productivity. Econometrica 71(6):1695–1725, http://www.econometricsociety.org CrossRefGoogle Scholar
  72. Michaely M, Papageorgiou D, Choksi A (1991) Liberalizing foreign trade. Blackwell, OxfordGoogle Scholar
  73. Michaely M (1977) Exports and growth: an empirical investigation. J Dev Econ 4(1):49–53. doi: 10.1016/0304-3878(77)90006-2 CrossRefGoogle Scholar
  74. Moschos D (1989) Export expansion, growth and the level of economic development: an empirical analysis. J Dev Econ 30(1):93–102. doi: 10.1016/0304-3878(89)90052-7 CrossRefGoogle Scholar
  75. Neary JP (2009) Putting the 'new' into new trade theory: Paul krugman's nobel memorial prize in economics. Scand J Econ 111(2):217–250, http://www.blackwellpublishing.com/journal.asp?ref=0347-0520 CrossRefGoogle Scholar
  76. Ocampo JA, Villar L (1992) Trayectoria y vicisitudes de la apertura económica colombiana. Pensamiento Iberoamericano 21:165–186Google Scholar
  77. Prebisch R (1950) The economic development of Latin America and its principal problems. United Nations, New YorkGoogle Scholar
  78. Quah D, Rauch JE (1990) Openness and the rate of economic growth. Working Paper, University of California San DiegoGoogle Scholar
  79. Ram R (1985) Exports and economic growth: some additional evidence. Econ Dev Cult Change 33(2):415–425CrossRefGoogle Scholar
  80. Ram R (1987) Exports and economic growth in developing countries: evidence from time-series and cross-section data. Econ Dev Cult Change 36(1):51–72, http://www.journals.uchicago.edu/EDCC/home.html CrossRefGoogle Scholar
  81. Rigobon R, Rodrik D (2004) Rule of law, democracy, openness, and income: estimating the interrelationships. NBER Working Paper Series, (10750):1–28. http://www.nber.org/papers/w10750
  82. Rivera-Batiz L, Romer PM (1991) Economic integration and endogenous growth. Q J Econ 106(2):531–555, http://www.mitpressjournals.org/loi/qjec CrossRefGoogle Scholar
  83. Rodríguez F, Rodrik D (1999) Trade policy and economic growth: a Skeptic’s guide to the cross-national evidence. CEPR Discussion Papers (2143) http://www.cepr.org/pubs/new-dps/dplist.asp?dpno=2143
  84. Romer PM (1992) Two strategies for economic development: using ideas and producing ideas. Paper presented at the World Bank Annual Conference on Economic Development. World Bank, Washington.Google Scholar
  85. Sachs J, Warner A (1995) Natural resource abundance and economic growth. NBER Working Paper Series (5398)Google Scholar
  86. Sachs JD, Warner A, Åslund A, Fischer S (1995) Economic reform and the process of global integration. Brookings Papers on Economic Activity (1, 25th Anniversary Issue) 1–118Google Scholar
  87. Schiff M, Wang Y (2003) Regional integration and technology diffusion: the case of the North America Free Trade Agreement. World Bank Policy Research Working Paper, (3132)Google Scholar
  88. Schiff M, Wang Y, Olarreaga M (2002) Trade-related technology diffusion and the dynamics of north-south and south-south integration. World Bank Policy Research Working Paper (2861):1-25. http://www-wds.worldbank.org/servlet/WDSContentServer/WDSP/IB/2002/07/31/000094946_02071204322621/Rendered/PDF/multi0page.pdf
  89. Segerstrom PS, Anant TCA, Dinopoulos E (1990) A Schumpeterian model of the product life cycle. Am Econ Rev 80(5):1077–1091Google Scholar
  90. Sen S (2005) International trade theory and policy: what is left of the free trade paradigm? Dev Change 36(6):1011–1029CrossRefGoogle Scholar
  91. Stanley DL, Bunnag S (2001) A new look at the benefits of diversification: lessons from Central America. Appl Econ 33(11):1369–1383CrossRefGoogle Scholar
  92. Taylor L (1988) Economic openness — problems to the century's end. WIDER Working Papers, 1–81Google Scholar
  93. Thirlwall AP (2000) Trade, trade liberalisation and economic growth: theory and evidence. Economic Research Papers, African Development Bank (63):1-28. http://www.afdb.org/fileadmin/uploads/afdb/Documents/Publications/00157660-FR-ERP-63.PDF
  94. Todaro MP, Smith SC (2006) Economic development, Ninthth edn. Pearson Addison Wesley, BostonGoogle Scholar
  95. UNCTAD (1995) Recent developments in the diversification of developing countries' commodity exports. Unpublished manuscriptGoogle Scholar
  96. United Nations Economic Commission for Africa (UNECA) (2007) Diversification trends in africa. In Economic report on Africa 2007: accelerating africa's development through diversification. pp 115–131Google Scholar
  97. Vamvakidis A (1998) Regional integration and economic growth. World Bank Econ Rev 12(2):251–270CrossRefGoogle Scholar
  98. Van den Berg H, Lewer JJ (2007) International trade and economic growth. M.E. Sharpe, Armonk, New YorkGoogle Scholar
  99. Venables AJ (2003) Winners and losers from regional integration agreements. Econ J 113(490):747–761CrossRefGoogle Scholar
  100. Vernon R (1966) International investment and international trade in the product cycle. Q J Econ 80(2):190–207CrossRefGoogle Scholar
  101. Wacziarg R (2001) Measuring the dynamic gains from trade. World Bank Econ Rev 15(3):393–429. doi:http://wber.oxfordjournals.org/ CrossRefGoogle Scholar
  102. Wacziarg R, Welch KH (2003) Trade liberalization and growth: new evidence. NBER Working Paper Series, (10152) http://www.nber.org/papers/w10152
  103. Wälde K, Wood C (2004) The empirics of trade and growth: where are the policy recommendations? Int Econ Econ Policy 1(2–3):275–292CrossRefGoogle Scholar
  104. Wright G (2001) Resource-based growth then and now. Unpublished manuscriptGoogle Scholar
  105. Sachs, J. D. (1987). Trade and exchange rate policies in growth-oriented adjustment programs. NBER Working Paper Series, (2226), 1–47Google Scholar
  106. Hausmann R, Hwang J, and Rodrik D (2007) What you export matters. Journal of Economic Growth, 12(1), 1-25Google Scholar
  107. Summers R, and Heston A (1991) The penn world table (mark 5): An expanded set of international comparisons, 1950-1988. Quarterly Journal of Economics, 106(2), 327–368Google Scholar

Copyright information

© Physica-Verlag HD 2011

Authors and Affiliations

  1. 1.School of Business AdministrationEAFIT UniversityMedellínColombia

Personalised recommendations