Breaking Into New Markets: Emerging Lessons for Export Diversification

CONTENTS......Page 7
Foreword......Page 13
Preface......Page 15
Contributors......Page 17
Abbreviations......Page 21
Executive Summary......Page 23
1 Breaking Into New Markets: Overview......Page 27
PART I DOES DIVERSIFICATION MATTER?......Page 63
2 Trade Structure and Growth......Page 65
3 Export Diversification and Economic Growth......Page 81
4 Exposure to External Shocks and the Geographical Diversification of Exports......Page 107
5 Diversification, Innovation, and Imitation of the Global Technological Frontier......Page 127
6 Watching More than the Discovery Channel to Diversify Exports......Page 137
PART II POLICIES: LESSONS FROM EXPERIENCE......Page 151
7 The Life and Death of Trade Flows: Understanding the Survival Rates of Developing-Country Exporters......Page 153
8 Promoting New Exports: Experience from the Middle East and North Africa......Page 171
9 Exporting Services......Page 187
10 Tourism as a Strategy to Diversify Exports: Lessons from Mauritius......Page 209
11 Fostering Productive Diversification through Tourism......Page 223
12 Export Promotion Agencies: Strategies and Impacts......Page 237
13 Special Economic Zones and Economic Diversification: Some Evidence from South Asia......Page 249
14 Infrastructure and Diversifying through Better Products......Page 263
Index......Page 281
1.1 Global Production and the iPod......Page 35
8.1 Tunisia Export Market Access Fund: FAMEX......Page 182
11.1 Exports of Butterfly Chrysalises from Costa Rica......Page 225
1.1 New Products and Their Average Value: Nonparametric Curves......Page 30
1.2 Share of Export Growth Contributed by Intensive and Extensive Margins, 1990–2005......Page 31
1.3 Ten-Year Survival Rate of New Export Products Relative to per Capita Income, 2004......Page 39
1.4 Export Market Penetration Relative to per Capita Income......Page 41
1.5 Global Expansion of Services Exports, 1995–2006......Page 43
3.1 Latin America and East Asia: Income Content of Exports (EXPY)......Page 85
3.2 Diversification and Innovation......Page 87
3.3 Evolution of Export Concentration and Real GDP per Capita, Selected Countries......Page 89
3.4 Export Concentration and GDP per Capita Growth, 1961–2000......Page 91
4.1 Output Volatility by Income Group, 1965–2006......Page 109
4.2 Average Level of Exposure to Country-Specific Shocks, 1966–2004......Page 114
4.3 Exposure to Country-Specific Shocks for Singapore and Brazil, 1966–2004......Page 115
4.4 Terms-of-Trade Volatility by Income Group, 1985–2005......Page 117
4.5 Geographical and Product Diversification by Income Group, 1962–2004......Page 118
5.1 Diversification and Innovation......Page 131
5.2 Discovery and GDP by Leamer Commodity Groups......Page 132
6.1 Decomposition of Export Growth for 99 Developing Countries, 1995–2004......Page 139
6.2 Export Market Penetration and per Capita Income......Page 141
6B.1 Decomposition of Export Growth of 99 Developing Countries: 1993–2002......Page 148
7.2 Ten-Year Survival Rates of Export Flows, 2004......Page 159
7.3 Survival Rates for Ecuadoran Exporters......Page 160
8.1 Herfindahl-Hirschmann Index of Export Concentration, 1990 and 2005......Page 173
9.1 The Pattern and Growth of Exports of Business Services......Page 189
9.2 Importance of Skill Intensity......Page 191
9.3 Importance of Institutions......Page 193
9.4 Shifting Revealed Comparative Advantage in Brazil and India, 1990–2000......Page 195
9.5 Service Exports per Capita......Page 197
10.1 Exports in Mauritius, 1980–2004......Page 211
10.2 Effects of Tourism: Direct and Indirect......Page 216
11.1 Tourism: A Major Stimulant for New Product Discovery......Page 226
11.2 Correlation of Tourism Specialization with Export Diversification......Page 230
11.3 Determinants of Tourism Links......Page 232
12.1 Correlation of Exports to Export Promotion Budgets......Page 241
12.2 Strategies or Goals of Export Promotion Agencies, by Region......Page 244
13.1 Exports of Footwear and Leather from Bangladesh, 1972–2003......Page 257
13.2 Exports of Tents from Bangladesh, 1972–2003......Page 258
13.3 Relative Importance of Different SEZ Elements......Page 259
14.1 Index of Reforms in Financial and Infrastructure Service Sectors and in Investment Climate for 10 Countries, 1989–2000......Page 270
14.2 Effect of Infrastructure Reforms on Export Unit Values, 1989–2000......Page 274
2.1 Estimated Effect of Trade Structure on Growth, 1980–99......Page 71
3.1 Estimation of Augmented Solow Growth Model by System GMM......Page 94
3A.1 Variable Definitions and Sources......Page 100
3A.2 Additional Estimation of Augmented Solow Growth Model by System GMM......Page 101
4.1 Summary Statistics by Income Group, 1963–2002......Page 119
4.2 Explaining Exposure to External Country-Specific Shocks......Page 121
4.3 GDP Volatility and Exposure to Risk......Page 122
5.1 The Changing Nature of Innovation......Page 130
6.1 Contribution of the Intensive and Extensive Margins to Export Growth, by Region......Page 140
6.3 Export Market Penetration for Albania and the Czech Republic, 2004......Page 142
6A.1 Developing-Country Exporters, by Income Level......Page 146
6A.2 Importing Countries and Economies......Page 147
7A.1 Importers Covered......Page 164
7A.2 Exporters Covered......Page 165
7C.1 Semiparametric Results for Full Sample......Page 167
8.1 Decomposition into Intensive and Extensive Margins of Export Growth, Selected Countries, 1995–2005......Page 174
9.1 Zambia’s Services Export Specialization in a Cross-Section of Countries......Page 196
9.2 Estimating the Gains from Trade in Health Services for the United States......Page 200
13.1 Fiscal Incentives in South Asian Special Economic Zones......Page 252
13.2 Share of Special Economic Zone Exports in Total Exports......Page 256
14.1 Estimates of Effects of Infrastructure Reforms on Export Unit Values......Page 272