DP5444 What You Export Matters
|Author(s):||Ricardo Hausmann, Jason Hwang, Dani Rodrik|
|Publication Date:||January 2006|
|Keyword(s):||growth, productivity, specialization|
|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.