Impact of export product concentration on social protection expenditure

2020 ◽  
Vol 47 (3) ◽  
pp. 649-669
Author(s):  
Sena Kimm Gnangnon
Keyword(s):  
Developing Countries ◽  
International Trade ◽  
Social Protection ◽  
Product Diversification ◽  
Product Concentration ◽  
Content Type ◽  
The Impact ◽  
Positive Effect ◽  
Export Product ◽  
Export Product Diversification

PurposeThis study investigates empirically the impact of export product concentration (or diversification) on social protection expenditure in both developed and developing countries. The analysis further explores whether this effect depends on countries' degree of openness to international trade.Design/methodology/approachThe analysis has relied on an unbalanced panel data set comprising 112 countries over the period 1980–2010 and used the two-step system generalized methods of moments (GMM) estimator as the econometric approach.FindingsThe empirical analysis conveys two messages. First, low-income countries experience a positive effect of export product concentration on social protection expenditure, while for relatively advanced economies, export product diversification positively influences social protection expenditure. Second, countries that further open up their economies to international trade experience a positive effect of export product diversification on social protection expenditure, with the magnitude of this impact increasing as the degree of openness rises.Research limitations/implicationsThese findings highlight the relevance of export product diversification for social protection expenditure in both developed and developing countries, notably in the context of greater trade openness.Practical implicationsThe diversification of export products is one means for developed and developing countries alike to increase the scope for social protection expenditure.Originality/valueTo the best of the authors' knowledge, this topic had not been addressed.

scholarly journals Services export diversification and services export revenue stability: does trade openness matter?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sena Kimm Gnangnon
Keyword(s):  
Developing Countries ◽  
International Trade ◽  
Business Environment ◽  
Product Diversification ◽  
Export Diversification ◽  
Content Type ◽  
Policies And Measures ◽  
Export Revenue ◽  
Export Product ◽  
Export Product Diversification

PurposeThe international trade literature has established that export product diversification lowers export product revenue instability. The current analysis investigates whether this finding carries over services exports.Design/methodology/approachThe empirical analysis covers a sample of 152 countries over the period 1980–2014 and employs the two-step system generalized method of moments (GMM) approach.FindingsThe empirical findings indicate that services export diversification reduces services export revenue instability both over the full sample as well as over sub-samples of high-income countries (HICs), least developed countries (LDCs) as well as developing countries (i.e. non-HICs) that are not LDCs. HICs appear to experience a higher positive effect of services export diversification on services export revenue instability than in developing countries. The analysis also shows that countries that further open-up to international trade enjoy a greater reducing effect of services export diversification on the instability of services export revenue.Research limitations/implicationsThis analysis, therefore, adds to the existing studies on the relationship between export product diversification and the instability of revenue derived from goods exports by focusing on the services export side. An important message from the analysis is that countries that diversify their services export basket enjoy lower services export revenue instability when they further integrate into the world trade market.Practical implicationsThis study highlights the importance of services export diversification, including for stabilizing services export revenue to services traders. Diversifying services export items, including across traditional and modern services sectors involves the implementation of a wide range of policies and measures, of which the liberalization of the services sectors through reduction and eventually the elimination of services trade barriers; the improvement of the business environment and the development of domestic financial markets (see for example, Hoekman, 2017). It could be interesting that another study consider policies and measures that could promote services export diversification.Originality/valueTo the best of the authors’ knowledge, this is the first time this topic is being addressed, including empirically.

TRADE POLICY SPACE AND EXPORT PRODUCT DIVERSIFICATION

2020 ◽  
Vol 65 (06) ◽  
pp. 1727-1752
Author(s):  
SÈNA KIMM GNANGNON
Keyword(s):  
Trade Policy ◽  
Positive Impact ◽  
Quantitative Measure ◽  
Product Diversification ◽  
Policy Space ◽  
Aid For Trade ◽  
The Impact ◽  
Positive Effect ◽  
Export Product ◽  
Export Product Diversification

This paper provides a quantitative measure of the concept of trade policy space, at the macroeconomic level, and examines its impact on export product diversification. Trade policy space has been defined as the room of manoeuvre available to a government once its current trade policy is depurated from the impact of structural domestic and international factors. The analysis has been carried out using an unbalanced panel dataset comprising 165 countries (both developed and developing countries) over the period 2002–2015. Results suggest that trade policy space is positively associated with export product diversification, and the higher countries’ development level, the greater is the magnitude of the positive effect of trade policy space on export product diversification. The analysis further shows for recipient-countries of Aid for Trade (AfT) flows that trade policy space is complementary with AfT inflows in inducing export product diversification. In particular, the higher the amounts of AfT inflows that accrue to these countries, the greater is the positive impact of trade policy space on export product diversification in AfT recipient-countries.

Export Product Concentration and De Facto Fiscal Space: Does Openness to International Trade matter?

2018 ◽  
Vol 18 (1) ◽  
pp. 20170092
Author(s):  
Sena Kimm Gnangnon
Keyword(s):  
Developing Countries ◽  
International Trade ◽  
Positive Impact ◽  
Product Concentration ◽  
Empirical Results ◽  
Fiscal Space ◽  
High Level ◽  
The Impact ◽  
The Relationship ◽  
Export Product

This paper investigates the relationship between trade and fiscal space by examining whether export product concentration matters for fiscal space, in particular the “De Facto Fiscal Space”. The analysis relies on a panel dataset comprising 145 countries, including both developed and developing countries over the period 1984–2010. The empirical results suggest that on average, countries with a high level of export product concentration tend to experience a greater fiscal space. In particular, the impact of export concentration on fiscal space depends on countries’ level of development, and is higher, the lower the countries’ level of development. In addition, the positive impact of export concentration on fiscal space is higher, the higher the countries’ degree of openness to international trade.

Tax Reform, Trade Openness and Export Product Diversification in Developing Countries

2020 ◽  
Author(s):  
Sèna Kimm Gnangnon
Keyword(s):  
Developing Countries ◽  
Tax Reform ◽  
Trade Openness ◽  
Developed Countries ◽  
Product Diversification ◽  
Policy Implications ◽  
Tax Structure ◽  
Positive Effect ◽  
Export Product ◽  
Export Product Diversification

Abstract This article considers the effect of tax reform on export product diversification in developing countries, including through the trade openness channel. Tax reform involves the convergence of a developing country's tax structure towards the tax structure of developed countries. The analysis uses a sample of 112 developing countries over the period 1980–2014 and shows that tax reform exerts a positive effect on export product diversification, with least developed countries enjoying a higher positive effect than other countries in the full sample. Furthermore, the higher the degree of trade openness, the greater is the magnitude of the positive effect of tax reform on export product diversification. These outcomes have important policy implications.

scholarly journals Export Product Diversification, Poverty and Tax Revenue in Developing Countries

2020 ◽  
Author(s):  
Sena Kimm Gnangnon
Keyword(s):  
Developing Countries ◽  
Product Diversification ◽  
Tax Revenue ◽  
Product Concentration ◽  
Full Sample ◽  
Generalized Methods Of Moments ◽  
Methods Of Moments ◽  
The Empirical Analysis ◽  
Export Product ◽  
Export Product Diversification

The current paper has examined the effect of both export product diversification and poverty on non-resource tax revenue in developing countries. The analysis has used an unbalanced panel dataset of 111 countries over the period 1980-2014. Based on the Blundell and Bond two-step system Generalized Methods of Moments technique, the empirical analysis has shown interesting findings. Export product concentration and poverty influence negatively non-resource tax revenue over the full sample, but this effect varies across countries in the sample. Furthermore, the effect of export product diversification on non-resource tax revenue performance depends on the level of poverty. It appears that export product diversification influences positively non-resource tax revenue performance in countries that experience lower poverty rates. From a policy perspective, these findings show that policies in favour of diversifying export product baskets and reducing poverty would contribute to enhancing non-resource tax revenue performance in developing countries.

Aid for Trade, Export Product Diversification and Foreign Direct Investment

2020 ◽  
Author(s):  
Sèna Kimm GNANGNON
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Product Diversification ◽  
Product Concentration ◽  
Fdi Inflows ◽  
Aid For Trade ◽  
High Level ◽  
Positive Effect ◽  
Export Product

Abstract The few existing studies on the relationship between Aid for Trade (AfT) flows and Foreign Direct Investment (FDI) inflows tend to report a positive effect of total AfT flows, in particular of Aid flows for building economic infrastructure, on FDI inflows. The present article aims to complement these works by investigating whether the effect of AfT flows on inward FDI stock depends on recipient-countries' level of export product concentration. The empirical analysis has shown that AfT flows exert a strong positive effect on inward FDI stock in countries that experience a high level of export product concentration. These findings are relevant for developing countries in light of the concentration of their export products on primary commodities, and given the strong role of FDI flows for employment generation, economic growth and development in these countries.

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