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Multilateral trade liberalisation helps promote export product diversification: Trade tensions damage the prospects of the poorest economies
Author(s) -
Gnang Sena Kimm
Publication year - 2019
Publication title -
economic affairs
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.24
H-Index - 18
eISSN - 1468-0270
pISSN - 0265-0665
DOI - 10.1111/ecaf.12366
Subject(s) - diversification (marketing strategy) , liberalization , international economics , international trade , economics , free trade , trade barrier , product (mathematics) , business , market economy , geometry , mathematics , marketing
Abstract Using a large panel dataset over a 20‐year period, this article explores the effect of multilateral trade liberalisation on export product diversification. Empirical results show that multilateral trade liberalisation is positively associated with export product diversification. However, less‐developed economies experience a greater positive effect than relatively advanced economies. This analysis suggests that if trade tensions reduce cooperation on trade matters among World Trade Organization members, it may hinder export product diversification in developing countries, and the poorest countries might be the most adversely affected.