Date of this Version
We analyze the e ects of a country's export connections on its income growth using Trade Partner Diversi cation (TPD) measures that capture the country's relative importance in the international trade network. On top of the standard trade openness measures, TPD measures are shown to enter growth regressions positively and significantly, where one standard deviation increase in TPD is associated with a 1 to 1.5 percentage point increase in the annual growth rate. Threshold analyses show that TPD measures are positively and significantly correlated with growth in countries that have low financial depth, high inflation, low levels of human capital, or high trade openness.
Onder, Ali Sina and Yilmazkuday, Hakan, "Trade Partner Diversi cation and Growth: How Trade Links Matter" (2016). Economics Research Working Paper Series. 106.