Discussion paper

DP5444 What You Export Matters

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.


Rodrik, D, R Hausmann and (2006), ‘DP5444 What You Export Matters‘, CEPR Discussion Paper No. 5444. CEPR Press, Paris & London. https://cepr.org/publications/dp5444