Stages of Diversification
Top Cited Papers
Open Access
- 1 February 2003
- journal article
- Published by American Economic Association in American Economic Review
- Vol. 93 (1) , 63-86
- https://doi.org/10.1257/000282803321455160
Abstract
This paper studies the evolution of sectoral concentration in relation to the level of per capita income. We show that various measures of sectoral concentration follow a U-shaped pattern across a wide variety of data sources: countries first diversify, in the sense that economic activity is spread more equally across sectors, but there exists, relatively late in the development process, a point at which they start specializing again. We discuss this finding in light of existing theories of trade and growth, which generally predict a monotonic relationship between income and diversification.Keywords
All Related Versions
This publication has 8 references indexed in Scilit:
- Of Hype and Hyperbolas: Introducing the New Economic GeographyJournal of Economic Literature, 2001
- Was Prometheus Unbound by Chance? Risk, Diversification, and GrowthJournal of Political Economy, 1997
- Growth and InterdependenceThe Quarterly Journal of Economics, 1997
- Technological Diffusion, Convergence, and GrowthJournal of Economic Growth, 1997
- Globalization and the Inequality of NationsThe Quarterly Journal of Economics, 1995
- Technological choice, financial markets and economic developmentEuropean Economic Review, 1992
- The Penn World Table (Mark 5): An Expanded Set of International Comparisons, 1950-1988The Quarterly Journal of Economics, 1991
- Robust Locally Weighted Regression and Smoothing ScatterplotsJournal of the American Statistical Association, 1979