Export diversification has become one of the most important economic policy objectives of growth and development strategies for many countries, including nigeria export diversification is important for three main reasons, namely reducing macroeconomic instability, revenue expansion and improving value-added. Controlling for other variables that affect growth, export diversification, alone and interacted with per capital export volume growth, is found to be highly significant in explaining per capita gdp growth over the 1980-2003 period. A broad literature review on export diversification and economic growth was offered by hesse (2008), where he estimated a simple augmented solow growth model to examine the connection between export diversification and income per capita growth. Similar to the case of trade and economic growth, the relation between export diversification and economic growth has been analyzed in a wide number of empirical studies figure 22 depicts a diagram including different econometric and statistical methods that have been used for evaluating this possible linkage. If growth is to be achieved though horizontal export diversification, a country can either enlarge the share of products with increasing growth rates in export earnings, or it can add new products based on the growth rates of world prices (ali et al, 1991.
Empirical research shows that diversification in exports and in domestic production ha been conducive to ve economic growth, although a vast heterogeneity is observed amongst developing country groups and regions. This new paper provides a basic understanding of: (i) the concepts of export development and export diversification, (ii) what the theory says about export development and diversification and (iii) what empirical evidence shows on the links (correlates) between export diversification, exports growth, and overall growth the role of export development and diversification in growth in. In a dynamic growth framework hesse (2008) established a nonlinearity in the relationship between export diversification and economic growth for the period 1962-2000 with developing countries benefiting from diversifying their exports whereas the advanced countries perform better with export specialization.
It is frequently suggested that export diversification contributes to an acceleration of growth in developing countries horizontal export diversification into completely new export sectors may generate positive externalities on the rest of the economy as export oriented sectors gain from dynamic. Between export diversification and economic growth in cameroon using data from 1980-2012, the vector autoregressive (var) technique of estimation is adopted to stimulate policies necessitated by. Of the endogenous growth model to find a linkage b etween p ublic reve nues, spe nding and economic growth, which is to be linked with the relationship that exist betwee n non-oil export and. Using recent theories of growth, this paper presents empirical evidence that export diversification promotes economic growth this result is robust to different specifications of the growth equations and different measures of export diversification in developing countries, export diversification is.
The current growth model has weaknesses, however, and increasing economic diversification is paramount greater diversification would reduce exposure to volatility and uncertainty in the. The realism of whether export diversification could guarantee economic stability and sustainability, enhance revenue expansion and improve value addition to result to economic growth has remained a conceptual puzzle. Policies), little has been achieved in terms of economy-wide and export diversification section achieving sustainable economic growth and diversification at independence, farming, especially cattle, was the most important economic activity. Assessing the relationship between diversification of non-oil export product and economic growth in nigeria dr nwanne, t f i phd, hcib department of accounting/finance, faculty of management and social sciences, godfrey export diversification and serve as a channel for poverty reduction. 68 journal of african development (2015) 17:67–81 introduction growth has been a major subject of concern for nations and researchers all over the world the idea that export diversification (ed) induces economic growth is not alien to the.
That economic growth and development may be achieved by export diversi˚ cation in much of the related literature reference has been made to the ‘concentration phenomenon’, with export concentration being believed a major contributor of instability in export revenues. Tajikistan has sustained high economic growth since its civil war ended in 1997 real gross domestic product (gdp) during 1997–2015 grew at an average 72% a year, driven mainly by agriculture and services. Export diversification and economic growth iii about the series the commission on growth and development led by nobel laureate mike spence was established in april 2006 as a response to two insights. Abstract this paper examines the relationship between export diversification and economic growth in malaysia we use annual data from 1980-2007 and time-series techniques of cointegration and granger causality tests to examine the long-run relationship and dynamic interactions among the variables.
Export 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. The development of complex economic structures is a harbinger of increasing competitiveness and export diversification in emerging and developing economies columns 3 and 4 test for the presence of nonlinearity in the relation between export diversification and gdp per capita growth. Export diversification and economic growth (english) abstract export 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.
Reveals that the export growth and overall economic growth are highly correlated and a robust restructuring in trade policy is needed for gaining momentum in diversification of export in bangladesh. Between export diversification and economic growth in chile, and their findings do suggest that chile has benefited greatly from diversifying its export base in a seminal paper, imbs and wacziarg (2003) based on domestic production and.
We investigate the export-growth relationship at disaggregate levels – disaggregation both at the country level and at the level of exports – focusing on the diversification and the. 4 economic diversification and nonextractive growth diversification of the economy and broad-based economic development are critical for economic diversification fast growth in export revenues from resource extraction is invariably accompanied by exchange rate appreciation pressures, or the so-called dutch. Therefore, export diversification appears as an important lever for economic growth this type of export strategy contradicts the conventional theories of international trade, such as ricardien model, which considers that countries should specialize in the production of goods for which they have a comparative advantage.