Export composition and economic growth in the Andean Community of Nations
DOI:
https://doi.org/10.17533/udea.le.n77a14770Keywords:
Economic growth, panel data, SURE estimation, export composition, Andean CommunityAbstract
This paper analyzes the relation between export composition and economic growth. Based on the structure developed by Feder (1983) and Crespo-Cuaresma and Wörz (2005), we develop a panel data model involving Bolivia, Colombia, Ecuador, Peru and Venezuela, member countries of the Andean Community (except Venezuela since 2011), during 1970-2009. The analysis was made for the countries both jointly and individually using the SURE method, then focusing on the degree of disaggregation of exports, and finally grouping exports according to the level of technological intensity. The results suggest that the influence of the export structure is different across countries and is divided between different types of exports; but the majority of the exports that affect positively and significantly economic growth in the Andean Community countries correspond to the manufacturing industry and high technology, and they do so via externality effect.
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