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Technological content of export diversification—Evolution along the economic growth process

Abstract

Exports from high-income countries are three times more diversified than those from low-income economies. We provide a new tech-based interpretation of the stages of diversification accompanying the economic growth paths of countries. Using the decomposition properties of the relative Theil index in a sample of 160 countries (1996–2018), we reveal that export diversification is driven mainly by changes in the variety of non-tech exports. However, the role of the technological component (technological diversification) increases as countries grow, and in high-income countries, it is responsible for more than one-third of the overall export diversification level. We examine country-specific diversification trajectories, showing that the rapid development of technological capacity drove export diversification in China or India. The technological component can explain 40 % of the perfectly diversified U.S. export structure. We show that 4IR exports embodying digital technologies play a negligible role in the diversification process due to their small measurable share in total exports.

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Category:
Articles
Type:
artykuły w czasopismach
Published in:
Structural Change and Economic Dynamics no. 74, pages 14 - 27,
ISSN: 0954-349X
Language:
English
Publication year:
2025
Bibliographic description:
Parteka A., Zarach Z., Kordalska A.: Technological content of export diversification—Evolution along the economic growth process// Structural Change and Economic Dynamics -Vol. 74, (2025), s.14-27
DOI:
Digital Object Identifier (open in new tab) 10.1016/j.strueco.2025.02.012
Sources of funding:
Verified by:
Gdańsk University of Technology

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