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Export diversification · 2010

Geographical Diversification of Developing Country Exports

World Development, 38(9), 1217–1228

The paper

What helps developing countries reach more export destinations? This paper examines domestic export costs, foreign tariffs, and transport costs across 117 countries.

Research findings

  • Lower export costs, tariffs, and international transport costs are associated with serving more foreign markets.
  • Domestic export costs have particularly strong links to geographical diversification in poorer countries and differentiated manufacturing sectors.

Policy takeaways

  • Complement market access negotiations with reforms to customs and export documentation at home.
  • Use trade facilitation to support firms entering new destinations, particularly as economies move into differentiated manufacturing.