Hesse, Heiko2017-08-282017-08-282008https://hdl.handle.net/10986/28040Export diversification can lead to higher growth. Developing countries should diversify their exports since this can, for example, help them to overcome export instability or the negative impact of terms of trade in primary products. The process of economic development is typically a process of structural transformation where countries move from producing "poor-country goods" to "rich-country goods." Export diversification does play an important role in this process. The author also provides robust empirical evidence of a positive effect of export diversification on per capita income growth. This effect is potentially nonlinear with developing countries benefiting from diversifying their exports in contrast to the most advanced countries that perform better with export specialization.en-USCC BY 3.0 IGOADVANCED COUNTRIESAGRICULTURAL PRODUCTIVITYAGRICULTURAL PRODUCTSAGRICULTUREBILATERAL TRADEBUSINESS CYCLECAPITA INCOME GROWTHCAPITAL ACCUMULATIONCAPITAL MARKETSCOMPARATIVE ADVANTAGECOMPETITIVENESSCONSTANT PRICESCONSTANT RATECONSUMERSCONVERGENCE DEBATECOUNTRY CASECOUNTRY REGRESSIONSCOUNTRY-SPECIFIC EFFECTSCROSS-COUNTRY PANELCROSS-SECTIONAL REGRESSIONSDATA MODELDEPENDENT VARIABLEDETERMINANTS OF GROWTHDEVELOPING COUNTRIESDEVELOPING COUNTRYDEVELOPMENT ECONOMICSDEVELOPMENT INDICATORSDEVELOPMENT POLICYDEVELOPMENT PRACTITIONERSDOMESTIC DEMANDDOWNWARD BIASDYNAMIC PANELECONOMETRIC ANALYSISECONOMETRICSECONOMIC AGENTSECONOMIC DEVELOPMENTECONOMIC GEOGRAPHYECONOMIC GROWTHECONOMIC GROWTH PERFORMANCEECONOMIC POLICYECONOMIC REFORMSECONOMIC RESEARCHECONOMIC REVIEWECONOMIC STUDIESECONOMIC THEORYECONOMICSECONOMICS LETTERSEDUCATIONAL ATTAINMENTEMPIRICAL ANALYSISEMPIRICAL EVIDENCEEMPIRICAL FINDINGSEMPIRICAL LITERATUREEMPIRICAL MODELEMPLOYMENT EQUATIONSENDOGENOUS GROWTHEXPLANATORY FACTORSEXPLANATORY VARIABLESEXPORTEXPORT DIVERSIFICATIONEXPORT GROWTHEXPORT PERFORMANCESEXPORTSEXTERNALITIESEXTERNALITYFISCAL POLICIESFIXED EFFECTSGDPGDP PER CAPITAGLOBAL ECONOMYGROWTH DEBATEGROWTH EMPIRICSGROWTH EQUATIONGROWTH EQUATIONSGROWTH INVESTMENTGROWTH LITERATUREGROWTH MODELGROWTH MODELSGROWTH PERFORMANCEGROWTH PROCESSGROWTH RATEGROWTH RATESGROWTH REGRESSIONGROWTH REGRESSIONSHETEROSKEDASTICITYHUMAN CAPITALINCOME GROWTHINCOME LEVELINCOME LEVELSINCOME PER CAPITAINCREASING GROWTHINDUSTRIAL ECONOMICSINDUSTRIALIZED COUNTRIESINEQUALITYINFORMAL ECONOMYINFORMATION EXTERNALITIESINTERNATIONAL TRADEINVERSE RELATIONSHIPJUDGMENTKNOWLEDGE ECONOMYLABOR FORCELABOR FORCE GROWTHLAGGED GROWTHLAGGED LEVELSLAGGED VALUESLEVEL OF TECHNOLOGYLOG INCOMELOW-INCOME COUNTRIESMACROECONOMIC VARIABLESMODEL OF GROWTHMODEL SPECIFICATIONSMONETARY ECONOMICSNATURAL LOGNATURAL RESOURCESNEGATIVE CORRELATIONNEGATIVE IMPACTNEGATIVE RELATIONSHIPNEGATIVE TERMSNEOCLASSICAL THEORYPANEL REGRESSIONSPATENTSPER CAPITA GROWTHPER CAPITA GROWTH RATEPER CAPITA INCOMEPOLICY MAKERSPOLICY MAKINGPOLICY RESEARCHPOLITICAL ECONOMYPOOR GROWTHPOPULATION GROWTHPOSITIVE EFFECTPOVERTY REDUCTIONPOWER PARITYPRIMARY PRODUCTSPURCHASING POWERREAL EXCHANGE RATEREAL GDPREGRESSION ANALYSISROLE OF INNOVATIONSERIES OBSERVATIONSSTATE OF KNOWLEDGESTRUCTURAL CHANGESUSTAINABLE GROWTHTECHNOLOGICAL PROGRESSTECHNOLOGY TRANSFERVALUE ADDEDVALUE­ADDEDWorking PaperWorld Bank10.1596/28040