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Product Variety and Economic Growth: Empirical Evidence for the Oecd Countries

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  • Mr. Michael Funke

Abstract

This paper uses panel data for 19 OECD countries and finds support for the hypothesis that a greater degree of product variety relative to the United States helps to explain relative per capita GDP levels. The empirical work relies upon some direct measures of product variety calculated from 6-digit OECD export and import data. Although the issue is still far from being settled, the emerging conclusion is that the index of relative product variety across countries is significantly correlated with relative per capita income levels.

Suggested Citation

  • Mr. Michael Funke, 2000. "Product Variety and Economic Growth: Empirical Evidence for the Oecd Countries," IMF Working Papers 2000/005, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2000/005
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    More about this item

    Keywords

    WP; product variety; economic growth; panel data; OECD countries; final-goods production function; intermediate products; product variety in the United States; variety in the United States; factor product variety; per capita income; Personal income; Exports; Human capital;
    All these keywords.

    JEL classification:

    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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