Export structure and economic growth in a developing country: case of Cote d’Ivoire

Coulibaly, Romaric and Akia, Sosthène Alban (2019): Export structure and economic growth in a developing country: case of Cote d’Ivoire.

Abstract

The aim of this paper is to examine the interactions between export structure and economic growth in Côte d'Ivoire. To reach this goal, we used a modeling based on the ARDL Bounds test of Pesaran (2001). We arrive at the results on the export basket of Côte d'Ivoire and the index of diversification act negatively on the economic growth both in short and long term. But this diversification seems to be concentrated in some sectors. These results suggest a diversification in the export basket by including other sectors and also a structural transformation of the Ivorian economy.

• Item Type: MPRA Paper
• Language: English
• Keywords: Diversification, exports, economic growth, ARDL Bound Tests
• Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O11 - Macroeconomic Analyses of Economic Development; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O13 - Agriculture ; Natural Resources ; Energy ; Environment ; Other Primary Products; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity; O - Economic Development, Innovation, Technological Change, and Growth > O5 - Economywide Country Studies > O55 - Africa

References

Aditya, A., & Roy, S. S. (2011, September). Export Diversification and Economic Growth: Evidence from Cross-country Analysis. Journal of International Trade and Economic Development 2011, 22(7), 952-992. doi:DOI: 10.1080/09638199.2011.619009

Agosin, M. R. (2007). EXPORT DIVERSIFICATION AND GROWTH IN EMERGING ECONOMIES. Serie Documentos de Trabajo(Working paper No 233).

Alwang, & Seigel. (1994). Portfolio Models and Planning for Export diversification: Malawi, Tanzania and Zimbabwe. Journal of Development Studies(30), 405-422.

Arip, M. A., Yee, S. L., & Bakri, A. K. (2010). Export diversification and Economic growth in Malaysia.

Ballaguer, J., & Cantavella- Jorda, M. (2004). Structural change in exports and economic growth: cointegration and causality analysis for Spain (1961-2000). Applied Economics(36), 473-477.

Barro. (1991). Economic Growth in a cross-section of countries. Q. Journal of Economics(No 160), 407-443.

Bleaney, M., & Greenaway, D. (2001). The Impact of Terms of Trade and Real Exchange Volatility on Investment and Growth in Sub-Saharan Africa. Journal of Development Economics(65), 491-500.

Cadot, e. a. (2009). Export diversification: what’s behind the Hump? Etudes et Documents.

Chenery, H. (1979). Structural Change and Development Policy. Oxford University Press.

De Pineres, A. G., & Ferrantino, M. (2000). Export Dynamics and Economic Growth in Latin America. Ashgate Publishing Ltd.

ESCAP. (2004). Export Diversification and Economic Growth: The Experience of Selected Least Developed Countries. Economic and Social Commission for Asia and Pacific.

FRANCE, B. D. (2007). Diversification économique en Afrique centrale : état des lieux et enseignements. Rapport Zone franc.

Ghosh, A. R., & Ostry, J. (1994). Export Instability and the External Balance in Developing Countries. IMF Staff Papers(No 41), 214-235.

Herzer, D., & Lehman, N. (2006). What does export diversification do for growth? An econometric analysis. Applied Economic Letters(38), 1825-1838.

Hesse, H. (2008). Export Diversification and Economic Growth. COMMISSION ON GROWTH AND DEVELOPMENT Working Paper(No 21).

Hirsch, L. (1971). Sales stabilization through export diversification. Review of Economic Statistics(No 53), 270-277.

Hodey, L. S., Oduro, A. D., & Senadza, B. (2015). Export Diversification And Economic Growth In Sub-Saharan Africa. Journal of African Development, 17:67–81.

Johnson, D. (2006). Exportations et croissance économique: une analyse emprique sur le Togo. Revue du CAMES.

Khodayi, H., Hadi, D., & Khodayi, H. (2014). Export diversification and economic growth in some selected developing countries. Academic Journals.

Kpemoua, P. (2016). EXPORTATIONS ET CROISSANCE ECONOMIQUE AU TOGO. HAL Archives ouvertes.

Lederman, D., & Maloney, W. (2003). Trade Structure and Growth. World Bank Policy Research Working Paper(No 3025).

Love, J. (1983). Concentration, Diversification and Earnings Instability: Some Evidence on Developing Countries ‘Exports of Manufactures and Primary Products. World Development(11), 787-793.

Matadeen, S. (2011). EXPORT DIVERSIFICATION AND ECONOMIC GROWTH: Case Study of a Developing Country: Mauritius. ICTI.

Monir, U. A., Moniruzzaman, M., & Roy, A. (2013). Price-Wage Spiral in Bangladesh: Evidence from ARDL Bound Testing Approach. International Journal of Applied Economics.

Mudenda, C., Choga, I., & Chigamba, C. (2014, May). The Role of Export Diversification on Economic Growth in South Africa. Mediterranean Journal of Social Sciences, 5(9), 705-712.

PESARAN, M. H., SHIN, Y., & SMITH, R. J. (2001). BOUNDS TESTING APPROACHES TO THE ANALYSIS OF LEVEL RELATIONSHIPS. JOURNAL OF APPLIED ECONOMETRICS.

Romer. (1990). Endogenous technological change. Journal of Political Economics( 98), 71-102.

Roudaut, & Rondeau. (2015). What Diversification of Trade Matters for Economic Growth of Developing Countries? CREM CNRS.

Sachs J. D., A. .. (2001). The Curse of Natural Resources. European Economic Review(No 45 ), 827-38.

Sannassee, R. V., Seetanah, B., & Lamport, M. J. (2014). Export diversification and economic growth: the case of Mauritius. World Trade Organization.

Syrquin, M. (1989). Patterns of Structural Change. Handbook of Economic Development.