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Measuring within Diversification

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As evidenced in the literature, countries diversify their exports not only across products, but also within products. An index that takes the within-industry dynamics into account is, however, not available. To fill this gap, a new index of diversification, Within Diversification Index (WDI), is constructed and presented for empirical purposes. The index values show that as countries become richer, their level of within diversification increases.
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Keywords: Diversification; dynamic comparative advantage; exports

Document Type: Research Article

Affiliations: Economic and Social Research Department, SESRIC, Ankara, Turkey

Publication date: May 26, 2016

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