Stages of Diversification

Jean Imbs and Romain Wacziarg

American Economic Review, 2003, vol. 93, issue 1, 63-86

Abstract: 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.

Date: 2003
Note: DOI: 10.1257/000282803321455160
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Related works:
Working Paper: Stages of Diversification (2003)
Working Paper: Stages of Diversification (2000)
Working Paper: Stages of Diversification (2000)
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