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Trade De-Specialization: Dynamics and Determinants
Why do economies lose their export edge―and what drives it? This paper examines trade de-specialization, the often-overlooked flip side of economic development and structural transformation.
Analyzing 164 economies and over 1,200 products from 2000？2019, the authors find that more than one-third of export specializations disappear within 2 decades. Technological relatedness, product ubiquity, and the People’s Republic of China’s rising comparative advantage emerge as key drivers. This is essential reading for economists, policymakers, and development practitioners navigating structural transformation in an integrated global economy.
Analyzing 164 economies and over 1,200 products from 2000？2019, the authors find that more than one-third of export specializations disappear within 2 decades. Technological relatedness, product ubiquity, and the People’s Republic of China’s rising comparative advantage emerge as key drivers. This is essential reading for economists, policymakers, and development practitioners navigating structural transformation in an integrated global economy.
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