Export sophistication: A dynamic panel data approach

0492034 - ÚTIA 2019 RIV US eng J - Journal Article
Kočenda, Evžen - Poghosyan, K.
Export sophistication: A dynamic panel data approach.
Emerging Markets Finance and Trade. Roč. 54, č. 12 (2018), s. 2799-2814. ISSN 1540-496X. E-ISSN 1558-0938
R&D Projects: GA ČR GA16-09190S
Institutional support: RVO:67985556
Keywords : export sophistication * emerging and developing economies * dynamic panel data
OECD category: Applied Economics, Econometrics
Impact factor: 0.934, year: 2018
http://library.utia.cas.cz/separaty/2018/E/kocenda-0492034.pdf

In this paper 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.
Permanent Link: http://hdl.handle.net/11104/0285676