Affiliation:
1. Yasar University, Turkey
Abstract
The sudden rise of countries like China and India has captured serious attention among economists. Some papers explain it with the changing structure of their product mix and construct an export sophistication index to rank countries according to their comparative advantages. By starting from the discussions on product quality, this chapter investigates whether a more rapid progression up the comparative advantage ladder or a more sophisticated export basket results in a more rapid economic expansion. For this purpose, data from 115 countries for the period 1985 to 2001 are used. The results support the positive effect of export sophistication on growth. The authors also show that when a country progresses, its growth rate increases.
Reference27 articles.
1. International product life cycles, trade and development stages.;D.Audretsch;The Journal of Technology Transfer,2017
2. Export Sophistication, Export-Led Growth and Product Space: Evidence from Selected Asian Economies
3. Absolute and Comparative Advantage, Reconsidered: The Pattern of International Trade with Optimal Saving
4. Growth and Integration: The Emergence of China and India and the Implications for Canada.;B.Desroches;ASSA Conference Paper,2006)
5. Easterly, W., & Levine, R. (2001). It's Not Factor Accumulation: Stylized Facts and Growth Models. Central Bank of Chile, Working Papers, No:164.