Publication:
Export Variety and Country Productivity

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dc.contributor.authorFeenstra, Robert
dc.contributor.authorLooi Kee, Hiau
dc.date.accessioned2013-06-27T13:35:21Z
dc.date.available2013-06-27T13:35:21Z
dc.date.issued2004-09
dc.description.abstractThe authors study the link between export product variety and country productivity based on data from 34 industrial and developing countries, from 1982 to 1997. They measure export product variety by the share of U.S. imports on the set of goods exported by each sampled country relative to the world. It is a theoretically sound index which is consistent with within-country GDP maximization, as well as cross-country comparison. They construct country productivity based on relative endowments and product variety. Increases in output product variety improve country productivity as the new mix of output may better use resources of the economy, and improve allocation efficiency. Such effects depend on the elasticity of substitution in production between the different varieties. The more different the varieties are in terms of production, the more efficient it is to use the endowments of the economy when a new variety is available, which leads to productivity gains. In addition, as suggested in the literature, export product variety depends on trade costs, such as tariffs, distance, and transport costs. Such trade cost variables are used as instruments to help the authors identify the effects of export variety on country productivity. Empirical evidence supports their hypothesis. Overall, while export variety accounts for only 2 percent of cross-country productivity differences, it explains 13 percent of within-country productivity growth. A 10 percent increase in the export variety of all industries leads to a 1.3 percent increase in country productivity, while a 10 percentage point increase in tariffs facing an exporting country leads to a 2 percent fall in country productivity.en
dc.identifierhttp://documents.worldbank.org/curated/en/2004/09/5185180/export-variety-country-productivity
dc.identifier.doi10.1596/1813-9450-3412
dc.identifier.urihttps://hdl.handle.net/10986/14228
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, D.C.
dc.relation.ispartofseriesPolicy Research Working Paper;No.3412
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectAGRICULTURE
dc.subjectALLOCATIVE EFFICIENCY
dc.subjectAVERAGE PRODUCTIVITY
dc.subjectBASE YEAR
dc.subjectBASIC METALS
dc.subjectCAPITAL FORMATION
dc.subjectCAPITAL STOCK
dc.subjectCOST FUNCTIONS
dc.subjectDEFLATORS
dc.subjectDEVELOPING COUNTRIES
dc.subjectECONOMICS
dc.subjectELASTICITIES
dc.subjectELASTICITY
dc.subjectELASTICITY OF SUBSTITUTION
dc.subjectEMPIRICAL EVIDENCE
dc.subjectENDOGENEITY
dc.subjectEQUATIONS
dc.subjectEQUILIBRIUM
dc.subjectEXOGENOUS VARIABLES
dc.subjectEXPORTS
dc.subjectGDP
dc.subjectGDP DEFLATOR
dc.subjectGROWTH MODELS
dc.subjectGROWTH RATE
dc.subjectIMPORTS
dc.subjectINPUT PRICES
dc.subjectINVENTORY
dc.subjectLABOR FORCE
dc.subjectMINING
dc.subjectMONOPOLISTIC COMPETITION
dc.subjectNATIONAL INCOME
dc.subjectPERFECT COMPETITION
dc.subjectPETROLEUM
dc.subjectPOSITIVE EFFECTS
dc.subjectPRICE DIFFERENCES
dc.subjectPRICE INDEXES
dc.subjectPRODUCT DIFFERENTIATION
dc.subjectPRODUCTION FUNCTION
dc.subjectPRODUCTIVE RESOURCES
dc.subjectPRODUCTIVITY
dc.subjectPRODUCTIVITY GROWTH
dc.subjectQUOTAS
dc.subjectSUPPLY CURVES
dc.subjectTARIFF BARRIERS
dc.subjectTIME SERIES
dc.subjectTOTAL FACTOR PRODUCTIVITY
dc.subjectTOTAL OUTPUT
dc.subjectTOTAL REVENUE
dc.subjectTRADE BARRIERS
dc.subjectTRADE LIBERALIZATION
dc.subjectTRADE VOLUME
dc.subjectTRANSPORT
dc.subjectVALUE ADDED
dc.subjectVALUE OF OUTPUT
dc.subjectWELFARE GAINS
dc.titleExport Variety and Country Productivityen
dspace.entity.typePublication
okr.crosscuttingsolutionareaJobs
okr.crossref.titleExport Variety and Country Productivity
okr.date.doiregistration2025-04-10T10:49:05.190577Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2004/09/5185180/export-variety-country-productivity
okr.globalpracticeSocial, Urban, Rural and Resilience
okr.globalpracticePoverty
okr.globalpracticeGovernance
okr.globalpracticeSocial Protection and Labor
okr.globalpracticeTrade and Competitiveness
okr.guid998451468779177765
okr.identifier.doi10.1596/1813-9450-3412
okr.identifier.externaldocumentum000012009_20041020154943
okr.identifier.internaldocumentum5185180
okr.identifier.reportWPS3412
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2004/10/20/000012009_20041020154943/Rendered/PDF/WPS3412.pdfen
okr.topicEconomic Theory and Research
okr.topicBanks and Banking Reform
okr.topicInternational Economics and Trade::Poverty and Trade
okr.topicEnvironmental Economics and Policies
okr.topicSocial Protections and Labor::Labor Policies
okr.topicUrban Development::Municipal Financial Management
okr.unitOff of Sr VP Dev Econ/Chief Econ (DECVP)
okr.volume1 of 1
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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