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Manufacturing export diversification and regionalization of trade: Which destinations for newly exported goods?

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  • Julie Regolo

Abstract

This paper studies the extent to which export diversification is related to the regionalization of trade by examining the destination pattern of newly exported goods. Using a panel database of bilateral trade between 116 countries of 1090 HS4 manufacturing goods over the period 2000–2010, I first show that for almost all countries in the sample, the average destination of goods not exported before 2000 and newly exported over the 2000–2010 period is more “accessible” in terms of distance, language or tariffs preferences compared to the average destination of traditionally exported goods. I find that this pattern of destinations is weakly dependent on the “age” of the exported goods but rather is explained by the fact that these newly exported goods have emerged in industries where the country has high production and export costs. It follows that export diversification is accompanied by trade regionalization, at least in the medium term.

Suggested Citation

  • Julie Regolo, 2017. "Manufacturing export diversification and regionalization of trade: Which destinations for newly exported goods?," International Economics, CEPII research center, issue 151, pages 26-47.
    • Handle: RePEc:cii:cepiie:2017-q3-151-3
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    File URL: http://www.sciencedirect.com/science/article/pii/S2110701716301585
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    Cited by:

    1. Olzhas Shaizandaevich Adilkhanov & Orazaly Sabden, 2020. "Evaluation of export diversification on sustainable growth in Kazakhstan," RIVISTA DI STUDI SULLA SOSTENIBILITA', FrancoAngeli Editore, vol. 0(2), pages 49-63.
    2. Parteka, Aleksandra, 2020. "What drives cross-country differences in export variety? A bilateral panel approach," Economic Modelling, Elsevier, vol. 92(C), pages 48-56.

    More about this item

    Keywords

    Export diversification; Trade costs; Newly exported goods; Regional trade;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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