March 17, 2018

Export Diversification and Economic Growth: An Analysis of - download pdf or read online

By Juan Felipe Mejía

ISBN-10: 379082741X

ISBN-13: 9783790827415

The major learn challenge addressed within the e-book is the only in regards to the position that export diversification might play for reinforcing monetary development in Colombia, either by way of new items and new geographic markets. The underlying motivation for centering the research at the eu Union’s industry are manifold, achieving from the glaring focus of exports – either when it comes to composition and markets – that Colombia nonetheless indicates, to the small quantity of empirical stories interpreting the present prestige and possibilities of the industrial family among Colombia and the ecu Union.

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Extra resources for Export Diversification and Economic Growth: An Analysis of Colombia’s Export Competitiveness in the European Union’s Market

Example text

Furthermore, it is important to recall the distinction between the static and dynamic gains from trade. The former result from the reallocation of resources from one sector to another -as increased specialization, based on comparative advantage, takes place. Dynamic gains from trade constantly shift outwards the production possibility frontier, provided that trade is associated with more investment and faster productivity growth based on scale economies, learning by doing and the acquisition of new knowledge from abroad, particularly through foreign direct investment (Thirlwall 2000, p.

2 Outline of the Dissertation 7 the diversification process. In brief, increasing levels of export diversification do not guarantee, by themselves, higher levels of growth (Bebczuk and Berrettoni 2006, p. 2). If there are, for instance, shortage of inputs, bad management practices or weak infrastructure in a country, such conditions could outweigh the possible benefits from diversifying away from primary production (Love 1983). Hence, the current section evaluates the current status of factors of paramount importance for a successful process of diversification in the world’s marketplace, such as the support for national innovation and technology adoption, the access to finance, the quality and level of the infrastructure, the status quo of the human capital in the country, and the role of trade-related institutions.

253). On the other side of the discussion, authors like (Arkolakis, Costinot, and Rodrı´guez-Clare 2010) – as will be more clearly explained hereinafter – contest this proposal, affirming that “richer trade models do not entail larger gains from trade” (p. 1). They suggest that the new sources of gains from trade may change their composition, but not their total size. At this point, a number of benefits associated to trade have been mentioned, all of them proposed by the international trade theory.

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Export Diversification and Economic Growth: An Analysis of Colombia’s Export Competitiveness in the European Union’s Market by Juan Felipe Mejía


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