Abstract
Applying cointegration techniques in a panel data setting, we document persistent growth of manufactured exports from certain developing countries. To complement the investigation of persistence (measured by the country 'fixed-effects'), we analyze asymmetries in income elasticities: for all developing countries, the decline in exports with world income contraction is sharper than is the rise on the upswing; the decline is, however, especially pronounced for countries with low or negative persistence. The results are consistent with long-term buyer-supplier relationships that create 'insiders' and 'outsiders' in manufactured goods trading. Exports are also influenced by the transactional infrastructure (proxied by telecommunications penetration).
Original language | English (US) |
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Pages (from-to) | 447-470 |
Number of pages | 24 |
Journal | Journal of Development Economics |
Volume | 53 |
Issue number | 2 |
DOIs | |
State | Published - Aug 1997 |
Externally published | Yes |
All Science Journal Classification (ASJC) codes
- Development
- Economics and Econometrics
Keywords
- Cointegration in panel data
- Demand for manufactured exports
- Persistence