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Understanding Export Diversification
Key Drivers and Policy Implications

by Rahul Giri, Saad N. Quayyum, and Rujun Yin

Series:Working Paper No. 19/105
ISBN 9781498313087
Code: #WPIEA2019105

Publication year: 2019

Cdn: $27.00; US: $25.00
Paperback
Language: English
29 pages
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We identify key factors, from large set of potential determinants, that explain the variation in export diversification across countries and over time using Bayesian Model Averaging (BMA), which addresses model uncertainty and ranks factors in order of importance vis-a-vis their explanatory power. Our analysis suggests, in order to diversify, policy makers should prioritize human capital accumulation and reduce barriers to trade. Other policy areas include improving quality of institutions and developing the financial sector. For commodity exporters reducing barriers to trade is the most important driver of diversification, followed by improving education outcomes at the secondary level and financial sector development.
Understanding Export Diversification
Cdn: $27.00; US: $25.00
International Monetary Fund (IMF) BookID: 125122 Added: 2019.6.14