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Export Sector Dynamics and Domestic Growth: The Case of Colombia
Author(s) -
Piñeres Sheila Amin Gutiérrez de,
Ferrantino Michael
Publication year - 1999
Publication title -
review of development economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.531
H-Index - 50
eISSN - 1467-9361
pISSN - 1363-6669
DOI - 10.1111/1467-9361.00067
Subject(s) - economics , diversification (marketing strategy) , externality , international economics , monetary economics , real gross domestic product , structural change , international trade , macroeconomics , microeconomics , business , marketing
Analyses of Colombian data have generally failed to confirm the hypothesis of export‐led growth. This paper generates several measures of export diversification and structural change in exports, and argues that these measures are useful in assessing growth externalities generated by the export sector. In a simultaneous‐equations framework, increases in the rate of export structural change are associated with accelerated Colombian GDP growth. Export diversification, by contrast, is not a source of economic growth, and the reduced‐form relationship between aggregate lagged export growth and GDP growth is weak.