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Export Specialisation and Local Economic Growth

Export Specialisation and Local Economic Growth This paper aims to provide empirical evidence on whether export specialization or diversification is better for local economic growth. Using export data from 354 magisterial districts of South Africa for 1996 and 2001 we estimate spatial growth regressions that include measures of the degree of export specialization and diversification. Overall, exporting regions outperform other (less or non‐) exporting regions. Also, we find that export specialisation, rather than export diversification, has been associated with local economic growth; with specialization in mining and agriculture being especially beneficial. Our results support the view that specialization in a locality’s area of comparative advantage is good for local economic development. We also find that localities with higher initial levels of human capital, and higher subsequent population growth, performed better. This is consistent with the belief that policies aimed at strengthening human capital and improving agglomeration economies, will enhance local economic development. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png The World Economy Wiley

Export Specialisation and Local Economic Growth

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References (54)

Publisher
Wiley
Copyright
© 2010 Blackwell Publishing Ltd
ISSN
0378-5920
eISSN
1467-9701
DOI
10.1111/j.1467-9701.2009.01239.x
Publisher site
See Article on Publisher Site

Abstract

This paper aims to provide empirical evidence on whether export specialization or diversification is better for local economic growth. Using export data from 354 magisterial districts of South Africa for 1996 and 2001 we estimate spatial growth regressions that include measures of the degree of export specialization and diversification. Overall, exporting regions outperform other (less or non‐) exporting regions. Also, we find that export specialisation, rather than export diversification, has been associated with local economic growth; with specialization in mining and agriculture being especially beneficial. Our results support the view that specialization in a locality’s area of comparative advantage is good for local economic development. We also find that localities with higher initial levels of human capital, and higher subsequent population growth, performed better. This is consistent with the belief that policies aimed at strengthening human capital and improving agglomeration economies, will enhance local economic development.

Journal

The World EconomyWiley

Published: Apr 1, 2010

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