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This study empirically examines the effect of Internet access on services export diversification. A panel dataset containing 131 countries is analyzed over 1995-2014 and shows that greater access to the Internet is positively associated with services export diversification. This outcome applies to both high-income and developing countries, and particularly to least developed countries (LDCs) among developing countries. Additionally, the effect of Internet access on services export product diversification translates to countries' level of innovation, merchandise exports, including export product concentration and size of foreign direct investment (FDI) inflows. These findings highlight the need for developing digital infrastructure and regulations that would facilitate access to the Internet, particularly in developing countries. The international community must focus on developing countries, particularly LDCs, by helping them to develop the requisite digital infrastructure and regulations to better participate in international trade, especially through greater series export diversification.

This study examines the Environmental Kuznets Curve (EKC) hypothesis by adopting a country’s ecological footprint as an indicator of environmental degradation in three East Asian countries: Japan, Korea, and China. During the development process, countries intend to balance between stabilizing export demand and maintaining sustainable economic improvement in the context of deteriorating global warming and climate change. The Environmental Kuznets Curve (henceforth, EKC) was originally developed to estimate the correlation between environment condition and economic development. In this paper, we started from the EKC model and adopted an Error Correction Methodology (henceforth, ECM) to estimate the EKC relationships in Japan, Korea (two developed countries), and China (a developing country) over the period of 1990 to 2013. Besides this, instead of only using Gross Domestic Product (henceforth, GDP), two subdivisions of trade diversification—export product diversification and export market diversification—are introduced as proxy variables for economic development in rectification of the EKC. The results demonstrate that both Korea and Japan satisfy the EKC theory by demonstrating an inverted U-shaped relationship between economic development and ecological footprint, while analysis based on data from China does not display the same tendency. For both export product diversification and market diversification, the more diversified the country’s export is, the bigger its ecological footprint. The policy implications of this econometric outcome are also discussed.

PurposeThis study investigates the effect of multilateral trade liberalization on services export diversification with a view to complementing the recently published work on the effect of multilateral trade liberalization on export product diversification.Design/methodology/approachThe empirical exercise been performed using a panel dataset of 133 countries over the period 1995–2014.FindingsThe findings show that multilateral trade liberalization is associated with greater services export diversification in both developed and developing countries alike. This is particularly the case in countries with a high reliance on manufactured goods exports or those that enjoy greater export product diversification. Interestingly, multilateral trade liberalization enhances services export diversification in countries that experience higher foreign direct investment inflows.Research limitations/implicationsThese findings highlight the importance of multilateral trade liberalization for services export diversification. The study has considered explicitly supply-side factors that could affect services export diversification. This is because the indicator of multilateral trade liberalization is highly correlated with some demand-side factors, such as the world demand for services exports. Therefore, another avenue for future research could involve looking at the demand side factors that could influence services export diversification, and whether the degree of multilateral trade liberalization matters for the influence of these demand factors on services export diversification.Practical implicationsThe current study through its positive effect on both export product diversification and services export diversification, greater cooperation among World Trade Organization (WTO) Members on trade matters could help revive economic growth, particularly in the current COVID-19 pandemic that has significantly plummeted it.Originality/valueTo the best of our knowledge, this is first study that has investigated this issue.

Abstract This paper investigates empirically the effect of export diversification (i.e. both export product diversification and services export diversification) on financial openness, using a sample of 119 countries (including both developed and developing countries) over the period 1985–2014. Based on the Blundell and Bond’s two-step system Generalized Method of Moments, the analysis has revealed that both export product diversification and services export diversification influence positively financial openness. However, this outcome hides differentiated effects across countries in the full sample. Especially, countries with a very high real per capita income experience a positive effect of export concentration on financial openness, while for countries with a relatively lower per capita income, it is rather export diversification that drives positively financial openness. Interestingly, the effect of export diversification on financial openness depends on the size of external shocks that affect domestic economies, as well as countries’ economic growth performance. Overall, these findings add to the empirical literature on the effect of international trade on financial openness by showing that both export product diversification and services export diversification matter for financial openness.

The paper explores the evolution of export diversification patterns along the economic development path. Using a large database with 156 countries over 19 years at the HS6 level of disaggregation (4,991 product lines), we look for action at the intensive and extensive margins. We find a hump-shaped pattern of export diversification similar to what Imbs and Wacziarg (2003) found for production. Diversification and subsequent reconcentration take place mostly along the extensive margin. This hump-shaped pattern is consistent with the conjecture that countries travel across diversification cones, as discussed in Schott (2003, 2004) and Xiang (2007).

In recent literature, scholars discussed the role of export diversification in environmental quality. However, most studies analyzed the role of export diversification in influencing carbon dioxide emissions with mixed results. However, since carbon dioxide emissions specifically capture the environmental effects of energy utilization, a change in the level of carbon dioxide emissions cannot be regarded as a comprehensive measure of environmental deterioration. Also, many previous studies use the original form of the Theil index to measure export diversification, and during the interpretation of the results, they disregard the fact that the lower value of the Theil index indicates higher diversification and vice versa. In this context, to address these gaps in the literature, a study on the contribution of export diversification in ecological footprint is necessary to understand the ecological impacts of export diversification. Therefore, this study analyzes the contribution of export diversification in ecological footprint covering the period between 1965 and 2017 using the STIRPAT model in the context of India which is required to fulfill the demands for resources of over 1.3 billion people. The study relied on the environmental Kuznets curve hypothesis framework to understand the role of export diversification in ensuring environmental sustainability. Using the newly developed Augmented ARDL test, the study established that variables of interest are cointegrated. In the long-run estimation, export diversification reduces the ecological footprint of India and helps establish the inverted-U–shaped nexus between ecological footprint and economic growth. Thus, the environmental Kuznets curve hypothesis was evidenced to hold for India. This important finding divulges that India can control the level of environmental footprints, and therefore decrease environmental degradation by continuously increasing export product diversification. Also, India is on the right path to achieve a reduction in ecological footprint associated with more development when accounting for export diversification in the model. Moreover, energy intensity boosts environmental deterioration, while population density reduces it. Finally, the study discusses strategies to achieve environmental sustainability through increasing export diversification.

The mitigation of global warming by reducing greenhouse gas emissions has been the objective of successive negotiations and agreements between nations. At the same time, there is a consensus on the virtues of export diversification for the development of less advanced countries. This article investigates the effect of export diversification on CO2 emissions in the context of an environmental Kuznets curve hypothesis in 98 developed and developing countries during the period 1995–2013. Using short‐run (system Generalized Method of Moments) and long‐run (Pooled Mean Group) estimation methods, we find that the environmental Kuznets curve is valid and that export diversification has a positive effect on CO2 emissions.

We investigate the trade-economic growth nexus in developing countries considering the structure of the external sector. The economic literature has examined the effects on growth of export composition, export diversification and import composition, individually. We add to this discussion by jointly evaluating the role of these three factors in the trade-economic growth nexus. The assessment of the structure of the external sector allows identifying the features that improve the trade-economic growth nexus with relevant economic policy implications for developing countries. Using a sample of 19 developing countries and dynamic panel data models, we found that export composition and export diversification are insignificant. By contrast, the domestic content of exports, the share of high-tech imports and capital goods imports are positively associated with economic growth. Consequently, developing countries growth benefits from high-tech and capital goods imports, and potentially, from the development of an industrial policy able to boost the domestic production of inputs for the exporting sector.

In recent years, industrial growth has enabled the BRICS nations to increase their export earnings from both traditional and new products. However, in terms of modernization of industries, these nations can be considered as laggards, because the present production processes appear to be carbon-intensive and energy-inefficient. In this backdrop, the present study, by using the second-generation econometric procedures, is intended to examine the impact of industrialization, export diversification, technological innovation, income inequality, and resource rents on the carbon dioxide emissions in the BRICS nations from 1990 to 2018. The long-run coefficients revealed that the industrial expansion, reduction in export diversification, low concentration on traditional exports, and high concentration on new exports exacerbated the air quality in the BRICS nations. On the other hand, technological advancement contributed to restoring environmental quality during the study period. Furthermore, it is observed that the present research endeavors in the BRICS nations are insufficient in circumventing industrial pollution, as the value of the joint coefficient of technological advancement and industrialization is found insignificant but negative. Hence, based on the computed results, a multipronged policy framework is proposed, so that these nations can achieve the targeted sustainable development goals (SDGs) in the coming years.

Factor endowments and cross country differences create regional disparities among states. The disparity in sizes between the Chinese and Pakistani economies can lead to the creation of trade patterns that can positively or negatively impact the latter’s economy. The present paper attempts to analyze the pros and cons of forming a Free Trade Agreement (FTA) with China given the size, structure and trade patterns of Pakistan’s existing economy. It also deals with the crucial questions of: Can the formation of an FTA with China benefit Pakistan? Will trade liberalization under an FTA with a neighboring country like China spur Pakistan’s trade and growth? Looking at trends and trade patterns of Pakistan, the potential of Pakistan’s existing economy is analyzed to enhance interregional trade and export diversification by further deepening cooperation with China. In the light of this analysis, the paper also outlines a number of recommendations to extract the maximum benefit for Pakistan’s economy from this recently signed FTA with an old economic partner, China.