scholarly journals Effect of Export Product Quality on Export Product Diversification at the Extensive Margins

2021 ◽  
Vol 1 (1) ◽  
Author(s):  
Sèna GNANGNON
Keyword(s):  
Product Quality ◽  
Product Diversification ◽  
Policy Implications ◽  
Linear Effect ◽  
Generalized Methods Of Moments ◽  
Conclusion Section ◽  
Methods Of Moments ◽  
Export Product ◽  
Export Product Diversification

This paper explores the effect of improvement in export product quality on export product diversification at the extensive margins. The analysis relies on a sample of 135 countries (both developed and developing countries) over the period 1970-2014. It uses the two-step system Generalized Methods of Moments (GMM) estimator to perform the empirical exercise. Results show the existence of a non-linear effect of export product quality on export product diversification at the extensive margins: improvement of export product quality in countries with low levels of export product quality leads to greater export product diversification at the extensive margins. However, countries with a high quality of export products experience greater export product concentration at the extensive margins. The SE findings have policy implications discussed in the conclusion section of the paper.

scholarly journals Export Product Diversification, Poverty and Tax Revenue in Developing Countries

2020 ◽  
Author(s):  
Sena Kimm Gnangnon
Keyword(s):  
Developing Countries ◽  
Product Diversification ◽  
Tax Revenue ◽  
Product Concentration ◽  
Full Sample ◽  
Generalized Methods Of Moments ◽  
Methods Of Moments ◽  
The Empirical Analysis ◽  
Export Product ◽  
Export Product Diversification

The current paper has examined the effect of both export product diversification and poverty on non-resource tax revenue in developing countries. The analysis has used an unbalanced panel dataset of 111 countries over the period 1980-2014. Based on the Blundell and Bond two-step system Generalized Methods of Moments technique, the empirical analysis has shown interesting findings. Export product concentration and poverty influence negatively non-resource tax revenue over the full sample, but this effect varies across countries in the sample. Furthermore, the effect of export product diversification on non-resource tax revenue performance depends on the level of poverty. It appears that export product diversification influences positively non-resource tax revenue performance in countries that experience lower poverty rates. From a policy perspective, these findings show that policies in favour of diversifying export product baskets and reducing poverty would contribute to enhancing non-resource tax revenue performance in developing countries.

scholarly journals Export Diversification and Ecological Footprint: A Comparative Study on EKC Theory among Korea, Japan, and China

2018 ◽  
Vol 10 (10) ◽  
pp. 3657 ◽  
Author(s):  
Hongbo Liu ◽  
Hanho Kim ◽  
Shuanglu Liang ◽  
Oh-Sang Kwon
Keyword(s):  
Economic Development ◽  
Environmental Kuznets Curve ◽  
Ecological Footprint ◽  
Developed Countries ◽  
Product Diversification ◽  
Policy Implications ◽  
Export Market ◽  
Kuznets Curve ◽  
Export Product ◽  
Export Product Diversification

This study examines the Environmental Kuznets Curve (EKC) hypothesis by adopting a country’s ecological footprint as an indicator of environmental degradation in three East Asian countries: Japan, Korea, and China. During the development process, countries intend to balance between stabilizing export demand and maintaining sustainable economic improvement in the context of deteriorating global warming and climate change. The Environmental Kuznets Curve (henceforth, EKC) was originally developed to estimate the correlation between environment condition and economic development. In this paper, we started from the EKC model and adopted an Error Correction Methodology (henceforth, ECM) to estimate the EKC relationships in Japan, Korea (two developed countries), and China (a developing country) over the period of 1990 to 2013. Besides this, instead of only using Gross Domestic Product (henceforth, GDP), two subdivisions of trade diversification—export product diversification and export market diversification—are introduced as proxy variables for economic development in rectification of the EKC. The results demonstrate that both Korea and Japan satisfy the EKC theory by demonstrating an inverted U-shaped relationship between economic development and ecological footprint, while analysis based on data from China does not display the same tendency. For both export product diversification and market diversification, the more diversified the country’s export is, the bigger its ecological footprint. The policy implications of this econometric outcome are also discussed.

scholarly journals Export Diversification and Financial Openness

2020 ◽  
Author(s):  
Sena Kimm Gnangnon
Keyword(s):  
Capita Income ◽  
Product Diversification ◽  
Empirical Literature ◽  
Export Diversification ◽  
Per Capita Income ◽  
Financial Openness ◽  
Generalized Methods Of Moments ◽  
Per Capita ◽  
Export Product ◽  
Export Product Diversification

This paper investigates empirically the effect of export diversification (i.e., both export product diversification and services export diversification) on financial openness, using a sample of 119 countries (including both developed and developing countries) over the period 1985-2014. Based on the Blundell and Bond's two-step system Generalized Methods of Moments, the analysis has revealed that both export product diversification and services export diversification influence positively financial openness. However, this outcome hides differentiated effects across countries in the full sample. Specially, countries with a very high real per capita income experience a positive effect of export concentration on financial openness, while for countries with a relatively lower per capita income, it is rather export diversification that drives positively financial openness. Interestingly, the effect of export diversification on financial openness depends on the size of external shocks that affect domestic economies, as well as countries' economic growth performance. Overall, these findings add to the empirical literature on the effect of international trade on financial openness by showing that both export product diversification and services export diversification matter for financial openness.

Multilateral Trade Liberalization and Democracy: Does Export Product Diversification Matter?

2020 ◽  
pp. 2150002
Author(s):  
Sena Kimm Gnangnon
Keyword(s):  
Trade Liberalization ◽  
Product Diversification ◽  
Policy Implications ◽  
Multilateral Trade ◽  
Resource Rents ◽  
Natural Resource Rents ◽  
Multilateral Trade Liberalization ◽  
High Degree ◽  
Export Product ◽  
Export Product Diversification

This paper explores the effect of multilateral trade liberalization (MTP) on democracy, using a set of 148 countries over the period 1996–2016. In particular, it investigates whether this effect depends on countries’ level of export product concentration. The analysis shows that MTP promotes democracy only when it reaches a certain threshold. Furthermore, MTP promotes democracy in countries that enjoy a high degree of export product diversification, including away from primary products, or in those with low dependence on natural resource rents. These findings have important policy implications.

Effect of Export Upgrading on Financial Development

2019 ◽  
Vol 10 (03) ◽  
pp. 1950012 ◽  
Author(s):  
Sèna Kimm Gnangnon
Keyword(s):  
Developing Countries ◽  
Quality Improvement ◽  
Product Quality ◽  
Financial Development ◽  
Developed Countries ◽  
Product Diversification ◽  
Least Developed Countries ◽  
Product Quality Improvement ◽  
Export Product ◽  
Export Product Diversification

Using a panel dataset comprising 137 countries (both developed and developing countries) over the period 1970–2010, this paper has examined the effect of export upgrading (i.e., export product diversification and export product quality improvement) on financial development. The findings suggest that export product diversification and export product quality improvement influence positively and significantly financial development in high income countries (HICs) and developing countries alike. However, for least developed countries (LDCs), export product diversification promotes financial development, but export product quality improvement exerts a negative effect on financial development.

Tax Reform, Trade Openness and Export Product Diversification in Developing Countries

2020 ◽  
Author(s):  
Sèna Kimm Gnangnon
Keyword(s):  
Developing Countries ◽  
Tax Reform ◽  
Trade Openness ◽  
Developed Countries ◽  
Product Diversification ◽  
Policy Implications ◽  
Tax Structure ◽  
Positive Effect ◽  
Export Product ◽  
Export Product Diversification

Abstract This article considers the effect of tax reform on export product diversification in developing countries, including through the trade openness channel. Tax reform involves the convergence of a developing country's tax structure towards the tax structure of developed countries. The analysis uses a sample of 112 developing countries over the period 1980–2014 and shows that tax reform exerts a positive effect on export product diversification, with least developed countries enjoying a higher positive effect than other countries in the full sample. Furthermore, the higher the degree of trade openness, the greater is the magnitude of the positive effect of tax reform on export product diversification. These outcomes have important policy implications.

scholarly journals Explaining Trends and Factors Affecting Export Diversification in ASEAN and SAARC Regions: An Empirical Analysis

2021 ◽  
Vol 2 (1) ◽  
pp. 1-28
Author(s):  
SHABANA NOUREEN ◽  
ZAFAR MAHMOOD
Keyword(s):  
Time Series Data ◽  
Business Environment ◽  
Product Diversification ◽  
Policy Implications ◽  
Series Data ◽  
Export Diversification ◽  
Domestic Investment ◽  
Integration Model ◽  
Export Product ◽  
Export Product Diversification

This paper examines the role played by country-specific factors in the determination of export product diversification process. To meet this objective, the paper begins by constructing a time series data for export diversification using the Herfindahl index. Then, it applies the fully modified OLS co-integration model to a panel of selected ASEAN and SAARC countries to find out the main determinants of export product diversification. Export diversification pattern shows that since the mid-1980s the ASEAN countries have continuously witnessed export diversification and the SAARC countries embarked on export diversification journey since the early 1990s. Analysis of the determinants suggests that foreign direct investment, domestic investment, competitiveness, real depreciation of domestic currency, financial sector development and institutional strength are significantly and positively related to export product diversification in both regions. These findings have important policy implications for the two regions. They call upon the policymakers for further diversification of exports, especially in the areas of their specialization that are vital for their smooth and sustained foreign exchange earnings as well as economic development. The study also recommends improving international competitive strength via improving business environment to achieve the goal of export product diversification.

The effect of export tax rebates on product quality: evidence from China's agricultural product processing industry

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yue Liang ◽  
Jingqi Dang ◽  
Shuai Chen
Keyword(s):  
Quality Improvement ◽  
Product Quality ◽  
Policy Implications ◽  
Medium Size ◽  
Agricultural Product ◽  
Firm Innovation ◽  
Processing Industry ◽  
Content Type ◽  
Export Tax

PurposeThis study aims to establish the linkage among export tax rebate (ETR), firm innovation and product quality of Chinese agricultural product processing industry (APPI), so that more targeted policy implications can be discussed.Design/methodology/approachUsing highly disaggregated firm-product-destination-level data through 2001 to 2013 of Chinese APPI, this study employs a two-way fixed effects specification to establish the linkage between ETR and product quality, while the mediational model is adopted to examine potential mechanisms.FindingsBaseline estimates show that a 1% increase in ETR rate leads to a significant increase in the product quality of APPI by 0.12% on the whole. However, there is a nonlinear, inverse-U shaped relationship between ETR and product quality, and the optimal inflection point occurs when ERT rate equals 0.15. Mechanism analyses show that firm innovation is an important impact channel, which explains 9.8% of quality improvement induced by raising ETR. Further heterogeneous analyses reveal both the total effects of ETR on product quality and the mediation effects of innovation are dominated by young SMEs (small and medium-size enterprises).Practical implicationsAuthorities can promote the innovation and then product quality improvement of young SMEs by moderately increasing ETR rate. To ensure ETR more effective in improving quality, it is necessary for the government to encourage innovation. Authorities can reduce the risk of innovation failure for low-tech firms by increasing R&D subsidies, while ensuring innovation returns for high-tech firms in combination with stronger intellectual property protection.Originality/valueFirst, this is one of the earlier studies to explore the relationship between ETR and product quality specifically for Chinese APPI. Second, we show firm innovation as an important mediator so that policies aim at raising ETR rates are eventually beneficial to product quality. Third, using the highly disaggregated data, we allow ETR rate to vary across different products, which is an improvement in the accuracy of previous literature. Finally, our research provides additional empirical evidence for revealing the micro-mechanism of ETR affecting firm behaviors.

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