Seraphin Tovonjatovo1, Yinguo Dong 2

(1. School of Economics, Shanghai University, Shanghai, China;

2. School of Business, East China University of Science and Technology, Shanghai, China)

 

 

Abstract: Export diversification can lead to higher growth. Developing countries should diversify their exports since this can; for example, help them to overcome export instability or the negative impact of terms of trade in primary products. The process of economic development is typically a process of structural transformation where countries move from producing “poor-country goods” to “rich-country goods”. Export diversification does play an important role in this process. We also provide robust empirical evidence of a positive effect of export diversification on real GDP per capita.

 

 

Key words: export diversification; economic growth; real GDP; export; Madagascar

 

JEL codes: F1, F14