* Christian Volpe Martincus (Corresponding Author): Inter-American Development Bank, Stop W0610, 1300 New York Avenue, NW, Washington, DC 20577, United States of America. E-mail: firstname.lastname@example.org. Tel: +1 202 623 3199. Fax: +1 202 623 2995. Andrés Gallo: University of North Florida, Coggin College of Business, 1 UNF Drive, Jacksonville, FL 32224, United States of America. E-mail: email@example.com. Tel: +1 904 620 1694. Fax: +1 904 620 1300. We would like to thank the editors and referees for useful comments and suggestions. We also owe gratitude to Elisa Lorenzi and Jerónimo Carballo for valuable research assistance and Masakazu Watanuki for proving us with the data on domestic input-output transactions. The views and interpretation in this document are those of the authors and should not be attributed to the Inter-American Development Bank, its executive directors, or its member countries. Other usual disclaimers also apply.
Institutions and Export Specialization: Just Direct Effects?
Article first published online: 16 JAN 2009
© 2009 Blackwell Publishing Ltd
Volume 62, Issue 1, pages 129–149, February 2009
How to Cite
Martincus, C. V. and Gallo, A. (2009), Institutions and Export Specialization: Just Direct Effects?. Kyklos, 62: 129–149. doi: 10.1111/j.1467-6435.2009.00427.x
- Issue published online: 16 JAN 2009
- Article first published online: 16 JAN 2009
Many developing countries' exports tend to be highly concentrated in terms of sectors and even products. In particular, they are strongly specialized in self-contained sectors. Recent economic literature has shown that institutions contribute to explaining this pattern. In this paper, we argue that the degree of self-containment itself is endogenous to institutions. Ceteris paribus a given sector will therefore have different levels of interactions with the rest of the economy across countries depending on the quality of institutions. We provide supportive evidence using a simultaneous equation approach on data on sectoral trade, country-specific input-output linkages, and institutional strength.