TY - JOUR
T1 - Stages of diversification
AU - Imbs, Jean
AU - Wacziarg, Romain
PY - 2003/3
Y1 - 2003/3
N2 - This paper studies the evolution of sectoral concentration in relation to the level of per capita income. We show that various measures of sectoral concentration follow a U-shaped pattern across a wide variety of data sources: countries first diversify, in the sense that economic activity is spread more equally across sectors, but there exists, relatively late in the development process, a point at which they start specializing again. We discuss this finding in light of existing theories of trade and growth, which generally predict a monotonic relationship between income and diversification.
AB - This paper studies the evolution of sectoral concentration in relation to the level of per capita income. We show that various measures of sectoral concentration follow a U-shaped pattern across a wide variety of data sources: countries first diversify, in the sense that economic activity is spread more equally across sectors, but there exists, relatively late in the development process, a point at which they start specializing again. We discuss this finding in light of existing theories of trade and growth, which generally predict a monotonic relationship between income and diversification.
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U2 - 10.1257/000282803321455160
DO - 10.1257/000282803321455160
M3 - Review article
AN - SCOPUS:1342308880
SN - 0002-8282
VL - 93
SP - 63
EP - 86
JO - American Economic Review
JF - American Economic Review
IS - 1
ER -