What You Export Matters

Citation:

Hausmann, R., Hwang, J. & Rodrik, D., 2007. What You Export Matters. Journal of Economic Growth , 12 (1) , pp. 1-25. Copy at http://www.tinyurl.com/yj3ljkze

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.

Publisher's Version