WANT EXPORT DIVERSIFICATION? EDUCATE THE KIDS FIRST.

This paper uses Bayesian model averaging to uncover the true determinants of export diversification among 36 potential factors, and thus 2 potential models. Using data from 2001 to 2010, our results reveal two strong predictors: Primary school enrollment (99.7% posterior inclusion probability in the...

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Publicado en:Economic Inquiry Vol. 53; no. 4; pp. 1765 - 1783
Autores principales: Jetter, Michael, Ramírez Hassan, Andrés
Formato: Artículo
Publicado: Wiley-Blackwell Oct2015
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: WANT EXPORT DIVERSIFICATION? EDUCATE THE KIDS FIRST.
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        au:
          Jetter, Michael
          Ramírez Hassan, Andrés
        affil:
          School of Economics and Finance, Universidad EAFIT, Carrera 49 7 Sur 50, Medellin, Antioquia 3300, Colombia
          Business School, University of Western Australia, Perth Australia (July 2015 onwards)
      su:
        International trade
        Education
        Portfolio diversification
        Bayesian analysis
        Gross domestic product
        Foreign trade regulation
      sug:
        subj:
          International trade
          Education
          Educational Support Services
          All Other Miscellaneous Schools and Instruction
          Administration of Education Programs
          International Trade Financing
          Portfolio diversification
          Bayesian analysis
          Gross domestic product
          Foreign trade regulation
      ab: This paper uses Bayesian model averaging to uncover the true determinants of export diversification among 36 potential factors, and thus 2 potential models. Using data from 2001 to 2010, our results reveal two strong predictors: Primary school enrollment (99.7% posterior inclusion probability in the true model) raises export diversification, whereas the share of natural resources in gross domestic product (98.6%) lowers diversification levels. The importance of basic education coverage offers policymakers an opening toward diversifying exports, at least in the long run. This result is robust to accounting for the endogeneity of income levels by applying an instrumental variable BMA method. ( JEL C11, F1, F34, O1, O2, O11)
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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