What You Export Matters
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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.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.Terms of Use
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