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Export Diversification and Sources of Growth in Emerging Market Economies

Author

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  • Akram Vaseem

    (Indian Institute of Technology Hyderabad, Hyderabad, Telangana, India)

  • Rath Badri Narayan

    (Indian Institute of Technology Hyderabad, Hyderabad, Telangana, India)

Abstract

We examine the impact of export diversification on total factor productivity (TFP) growth in case of 28 emerging market economies (EMEs) using annual data from 1995 to 2014. The results indicate that export diversification has significant positive impact on TFP growth. Further the results show that the TFP growth contributes more towards output growth as compared to factor accumulation in case of highly export diversified countries. The policy suggests that the emerging countries should focus more on export diversification-led-growth via productivity channel.

Suggested Citation

  • Akram Vaseem & Rath Badri Narayan, 2017. "Export Diversification and Sources of Growth in Emerging Market Economies," Global Economy Journal, De Gruyter, vol. 17(3), pages 1-13, September.
    • Handle: RePEc:bpj:glecon:v:17:y:2017:i:3:p:13:n:3
    DOI: 10.1515/gej-2017-0018
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    More about this item

    Keywords

    export diversification; total factor productivity; financial development; human capital; panel unit root; dynamic panel data model; EMEs;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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