Do Differences in the Types of Commodities Exported Matter for Export Concentration?

United Nations Conference on Trade and Development (UNCTAD)

May 2020 · United Nations

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This paper examines whether the type of commodity dominating a country’s exports matters for export concentration. Using a dataset covering 173 countries, including 87 commodity-dependent developing countries, we estimate dynamic panel data models that control for a large set of determinants of export concentration. We find that GDP shares of energy exports and, to a lesser extent, GDP shares of minerals, are important determinants of export concentration. Our results imply that developing countries that are dependent on energy or minerals sectors face challenges that are different from those faced by countries dependent on the export of agriculture and manufacturing products. Economic and export diversification policies need to take these differences into account.