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From Coffee Beans to Microchips: Export Diversification and Economic Growth in Costa Rica

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  • Ferreira, Gustavo F.C.
  • Harrison, R. Wes

Abstract

In the wake of a severe economic crisis in the 1980s Costa Rica abandoned an import substitution model of development adopted in the 1960s and implemented policies supporting foreign investment and the diversification of its exports. This study presents an application of the model proposed by Herzer and Nowak-Lehnmann to test the hypothesis that export diversification has contributed to economic growth in Costa Rica via externalities of learning-by-doing and learning-by-exporting over the period of 1965–2006. After using the autoregressive distributed lags and dynamic ordinary least squares models no long-run relationship was found between export diversification and growth.

Suggested Citation

  • Ferreira, Gustavo F.C. & Harrison, R. Wes, 2012. "From Coffee Beans to Microchips: Export Diversification and Economic Growth in Costa Rica," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 44(4), pages 517-531, November.
    • Handle: RePEc:cup:jagaec:v:44:y:2012:i:04:p:517-531_02
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    Cited by:

    1. World Bank, 2014. "Costa Rica : Five Years after CAFTA-DR, Assessing Early Results for the Costa Rican Economy," World Bank Publications - Reports 20010, The World Bank Group.
    2. Maha Khan & Uzma Afzal, 2016. "The Diversification and Sophistication of Pakistan’s Exports: The Need for Structural Transformation," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 21(Special E), pages 99-127, September.
    3. Hongbo Liu & Hanho Kim & Justin Choe, 2019. "Export diversification, CO2 emissions and EKC: panel data analysis of 125 countries," Asia-Pacific Journal of Regional Science, Springer, vol. 3(2), pages 361-393, June.
    4. Junguo Shi & Hubert Visas & Jabbar Ul-Haq & Shujaat Abbas & Sana Khanum, 2023. "Investigating the impact of export product diversification on environmental degradation: evidence from Chinese Provinces," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(10), pages 11455-11486, October.
    5. Ogundipe, Adeyemi & Amaghionyeodiwe, Lloyd, 2013. "Transnational Trade In Ecowas: Does Export Content Matter?," MPRA Paper 51617, University Library of Munich, Germany.
    6. Salifou K. Coulibaly & Cao Erbao, 2019. "An empirical analysis of the determinants of cocoa production in Cote d’Ivoire," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 8(1), pages 1-19, December.
    7. Dahmani, Mounir, 2021. "Impact de la diversification des exportations sur la croissance économique: Cas de la Tunisie [Impact of export diversification on economic growth: case of Tunisia]," MPRA Paper 112225, University Library of Munich, Germany, revised 2021.
    8. Xiaozhen Qin & Shan Li & Weipan Xu & Xun Li, 2019. "Which Export Variety Matters for Urban Economic Growth, Related or Unrelated Variety?," Sustainability, MDPI, vol. 11(16), pages 1-19, August.
    9. Aamir Hussain Siddiqui, 2020. "Analysis of Pakistan Trade Policies in the Context of Export Diversification," Journal of Finance and Economics Research, Geist Science, Iqra University, Faculty of Business Administration, vol. 5(1), pages 59-76, March.

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