Export diversification and economic growth: New insights from developing countries

Abstract

This study contributes to existing literature by disintegrating heterogeneous effects of vertical diversification and horizontal diversification, as well as of country groups which are heavily dependent on a few primary and agriculture products or not. Growth regression results using Hausman - Taylor estimator on a sample of 70 developing countries for the period 2000-2019 confirm the immense advantage of both vertical and horizontal diversification to most developing countries, however, specialization is better strategy for primary products reliant countries.