Amurgo-Pacheco, AlbertoPierola, Martha Denisse2012-05-252012-05-252008-01https://hdl.handle.net/10986/6447This paper uses highly disaggregated trade data to investigate geographic and product diversification patterns across a group of developing nations for the period from 1990 to 2005. The econometric investigation shows that the gravity equation fits the observed differences in diversification across nations. The analysis shows that exports at the intensive margin account for the most important share of overall trade growth. At the extensive margin, geographic diversification is more important than product diversification, especially for developing countries. Taking part in free trade agreements, thereby reducing trade costs, and trading with countries in the North are also found to have positive impacts on export diversification for developing countries.CC BY 3.0 IGOABSOLUTE VALUEAGRICULTURAL PRODUCTSAGRICULTUREAPPARELBASE YEARBASKET OF GOODSBENCHMARKBILATERAL RELATIONSHIPSBILATERAL TRADEBILATERAL TRADE RELATIONSCENTRAL BANKCOMMODITIESCOMPARATIVE ADVANTAGECOST REDUCTIONCOUNTRY LEVELCURRENCYCUSTOMSCUSTOMS UNIONSDENSITY FUNCTIONDEPENDENT VARIABLEDEVELOPED COUNTRIESDEVELOPING COUNTRIESDEVELOPING ECONOMIESDEVELOPMENT ECONOMICSDISAGGREGATED LEVELDISTRIBUTION OF TRADEDOLLAR VALUEDOMESTIC MARKETECONOMETRIC ANALYSISECONOMETRICSECONOMIC DEVELOPMENTECONOMIC GROWTHECONOMIC LITERATUREECONOMIC POLICYECONOMIC RESEARCHECONOMIC STRUCTUREECONOMICS LETTERSELASTICITYELASTICITY OF SUBSTITUTIONEMPIRICAL EVIDENCEEMPIRICAL WORKEQUILIBRIUMESTIMATION METHODESTIMATION TECHNIQUESEXPECTED VALUEEXPORT BASKETEXPORT DIVERSIFICATIONEXPORT GROWTHEXPORT PRODUCTSEXPORT PROMOTIONEXPORTERSEXPORTSEXTERNALITIESFINAL GOODSFOREIGN MARKETSFREE TRADEFREE TRADE AGREEMENTSFUTURE RESEARCHGDPGEOGRAPHIC DIVERSIFICATIONGLOBAL ECONOMIC PROSPECTSGRAVITY EQUATIONGRAVITY MODELGRAVITY VARIABLESGROWTH VOLATILITYHIGH GROWTHIMPACT OF TRADEIMPORTSINCOMEINDEPENDENT VARIABLESINDIVIDUAL COUNTRIESINDUSTRIAL POLICYINDUSTRIAL SECTORINDUSTRIALIZATIONINTERNATIONAL ECONOMICSINTERNATIONAL PRICESINTERNATIONAL TRADEKNOWLEDGE SPILLOVERSLATIN AMERICANMARGIN ACCOUNTMARGIN ACCOUNTSMARGINAL COSTMARGINAL COSTSMARGINAL EFFECTMARGINAL EFFECTSMARKET ACCESSMARKET ENTRYMARKET SIZEMETAL PRODUCTSNEGATIVE SIGNNEW PRODUCTNEW PRODUCTS0 HYPOTHESISOUTSOURCINGPOLICY AREASPOLICY PERSPECTIVEPOLICY RESEARCHPREFERENTIAL TRADEPREFERENTIAL TRADE AGREEMENTSPREFERENTIAL TRADE LIBERALIZATIONPRICE INDEXPRODUCTION STRUCTUREREGIONAL TRADEREGIONAL TRADE AGREEMENTSREGIONALISMRELATIVE IMPORTANCESHARE OF WORLD TRADESIGNIFICANT IMPACTSUNK COSTSTARIFF DATATRADE AMONG DEVELOPING COUNTRIESTRADE COSTSTRADE DATATRADE EFFECTTRADE FACILITATIONTRADE FLOWSTRADE LIBERALIZATIONTRADE MODELTRADE MORETRADE POLICYTRADE RELATIONSHIPTRADE STRUCTURETRADE THEORIESTRADE VALUESTRADE VOLUMETRADING VOLUMESTRANSPARENCYUNDERESTIMATESVALUE OF EXPORTSWORLD DEVELOPMENT INDICATORSWORLD ECONOMYWORLD TRADEWORLD TRADE ORGANIZATIONWTOWorld Bank10.1596/1813-9450-4473