The Micro-D classification: A new approach to identifying differentiated exports
Alejandro Vicondoa; Federico Bernini; Julia Gonzalez; Juan Carlos Hallak
LACEA Economia, forthcoming
It is common to assess the evolution of a country’s export structure as a manifestation of the extent of progress or stagnation in its development process. Performing this exercise requires determining which features of exported products denote higher stages in that process. We argue that exports of differentiated products, especially when sold to developed countries, signal the acquisition of valuable knowledge that reflects development progress. We propose a new classification, denoted Micro-D, that by working at the finest aggregation level in customs nomenclatures allows for a more precise identification of differentiated products. Most saliently, using package size as a proxy for product differentiation this classification can identify differentiated food and beverage exports. Thus, it is especially – though not only – suited to capturing export upgrading in land-abundant developing countries. Applied to Argentina in 1998-2011, the Micro-D classification delivers a new picture about its sources of export upgrading during this period.
JEL Classification: F10, F14, O14.
Keywords: Differentiated products, exports, classification.
Etiquetas: classification, Differentiated products, exports