Publication:
Export Variety and Country Productivity

dc.contributor.author Feenstra, Robert
dc.contributor.author Looi Kee, Hiau
dc.date.accessioned 2013-06-27T13:35:21Z
dc.date.available 2013-06-27T13:35:21Z
dc.date.issued 2004-09
dc.description.abstract The 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.identifier http://documents.worldbank.org/curated/en/2004/09/5185180/export-variety-country-productivity
dc.identifier.uri http://hdl.handle.net/10986/14228
dc.language English
dc.language.iso en_US
dc.publisher World Bank, Washington, D.C.
dc.relation.ispartofseries Policy Research Working Paper;No.3412
dc.rights CC BY 3.0 IGO
dc.rights.holder World Bank
dc.rights.uri http://creativecommons.org/licenses/by/3.0/igo/
dc.subject AGRICULTURE
dc.subject ALLOCATIVE EFFICIENCY
dc.subject AVERAGE PRODUCTIVITY
dc.subject BASE YEAR
dc.subject BASIC METALS
dc.subject CAPITAL FORMATION
dc.subject CAPITAL STOCK
dc.subject COST FUNCTIONS
dc.subject DEFLATORS
dc.subject DEVELOPING COUNTRIES
dc.subject ECONOMICS
dc.subject ELASTICITIES
dc.subject ELASTICITY
dc.subject ELASTICITY OF SUBSTITUTION
dc.subject EMPIRICAL EVIDENCE
dc.subject ENDOGENEITY
dc.subject EQUATIONS
dc.subject EQUILIBRIUM
dc.subject EXOGENOUS VARIABLES
dc.subject EXPORTS
dc.subject GDP
dc.subject GDP DEFLATOR
dc.subject GROWTH MODELS
dc.subject GROWTH RATE
dc.subject IMPORTS
dc.subject INPUT PRICES
dc.subject INVENTORY
dc.subject LABOR FORCE
dc.subject MINING
dc.subject MONOPOLISTIC COMPETITION
dc.subject NATIONAL INCOME
dc.subject PERFECT COMPETITION
dc.subject PETROLEUM
dc.subject POSITIVE EFFECTS
dc.subject PRICE DIFFERENCES
dc.subject PRICE INDEXES
dc.subject PRODUCT DIFFERENTIATION
dc.subject PRODUCTION FUNCTION
dc.subject PRODUCTIVE RESOURCES
dc.subject PRODUCTIVITY
dc.subject PRODUCTIVITY GROWTH
dc.subject QUOTAS
dc.subject SUPPLY CURVES
dc.subject TARIFF BARRIERS
dc.subject TIME SERIES
dc.subject TOTAL FACTOR PRODUCTIVITY
dc.subject TOTAL OUTPUT
dc.subject TOTAL REVENUE
dc.subject TRADE BARRIERS
dc.subject TRADE LIBERALIZATION
dc.subject TRADE VOLUME
dc.subject TRANSPORT
dc.subject VALUE ADDED
dc.subject VALUE OF OUTPUT
dc.subject WELFARE GAINS
dc.title Export Variety and Country Productivity en
dspace.entity.type Publication
okr.crosscuttingsolutionarea Jobs
okr.doctype Publications & Research :: Policy Research Working Paper
okr.doctype Publications & Research
okr.docurl http://documents.worldbank.org/curated/en/2004/09/5185180/export-variety-country-productivity
okr.globalpractice Social, Urban, Rural and Resilience
okr.globalpractice Poverty
okr.globalpractice Governance
okr.globalpractice Social Protection and Labor
okr.globalpractice Trade and Competitiveness
okr.identifier.doi 10.1596/1813-9450-3412
okr.identifier.externaldocumentum 000012009_20041020154943
okr.identifier.internaldocumentum 5185180
okr.identifier.report WPS3412
okr.language.supported en
okr.pdfurl http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2004/10/20/000012009_20041020154943/Rendered/PDF/WPS3412.pdf en
okr.topic Economic Theory and Research
okr.topic Banks and Banking Reform
okr.topic International Economics and Trade :: Poverty and Trade
okr.topic Environmental Economics and Policies
okr.topic Social Protections and Labor :: Labor Policies
okr.topic Urban Development :: Municipal Financial Management
okr.unit Off of Sr VP Dev Econ/Chief Econ (DECVP)
okr.volume 1 of 1
relation.isSeriesOfPublication 26e071dc-b0bf-409c-b982-df2970295c87
Files
Original bundle
Now showing 1 - 2 of 2
Thumbnail Image
Name:
English PDF
Size:
309.06 KB
Format:
Adobe Portable Document Format
Description:
No Thumbnail Available
Name:
English Text
Size:
141.19 KB
Format:
Plain Text
Description:
License bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
license.txt
Size:
1.71 KB
Format:
Plain Text
Description: