Publication: What You Export Matters
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2005-12
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Center for International Development at Harvard University
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Hausmann, Ricardo, Jason Hwang, and Dani Rodrik. “What You Export Matters.” CID Working Paper Series 2005.123, Harvard University, Cambridge, MA, December 2005.
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Abstract
When local cost discovery generates knowledge spillovers, specialization patterns become partly indeterminate and the mix of goods that a country produces may have important implications for economic growth. We demonstrate this proposition formally and adduce some empirical support for it. We construct an index of the "income level of a country's exports," document its properties, and show that it predicts subsequent economic growth.
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