DP5444 What You Export Matters
| Author(s): | Ricardo Hausmann, Jason Hwang, Dani Rodrik |
| Publication Date: | January 2006 |
| Keyword(s): | growth, productivity, specialization |
| JEL(s): | F1, O4 |
| Programme Areas: | Public Economics, International Trade and Regional Economics |
| Link to this Page: | cepr.org/active/publications/discussion_papers/dp.php?dpno=5444 |
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.