Export Sophistication: A Dynamic Panel Data Approach |
| |
Authors: | Ev?en Ko?enda Karen Poghosyan |
| |
Institution: | 1. Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic;2. Institute of Information Theory and Automation, the Czech Academy of Sciences, CESifo, Munich, IOS, Regensburg, Germany;3. Central Bank of Armenia, Economic Research Department, Yerevan, Armenia |
| |
Abstract: | In this article, we analyze export sophistication based on a large panel dataset (2001–2015; 101 countries) and using various estimation algorithms. Using Monte Carlo simulations, we evaluate the bias properties of estimators and show that GMM-type estimators outperform instrumental-variable and fixed-effects estimators. Based on our analysis we document that GDP per capita and the size of the economy exhibit significant and positive effects on export sophistication; weak institutional quality exhibits negative effect. We also show that export sophistication is path-dependent and stable even during a major economic crisis, which is especially important for emerging and developing economies. |
| |
Keywords: | dynamic panel data emerging and developing economies export sophistication international trade Monte Carlo simulation panel data estimators specialization |
|
|