Does sectoral concentration matter for export competitiveness?

This paper aims to contribute to a better understanding of the relationship between sectoral concentration and export competitiveness, using countries’ annual share of world exports (1995–2021) as a proxy for competitiveness. Results are also discussed for a specification estimated without China, treated as a structural outlier, to explore potential heterogeneity among developing economies. To achieve these objectives, we employ panel-data econometric techniques using G2SLS and IV-GMM estimators. Our main results reveal a positive relationship between sectoral specialization and export competitiveness. However, the impact of specialization is conditional upon (i) the degree of diversification relative to the global portfolio and (ii) the share of primary products in the export basket. Specifically, the findings indicate that international competitiveness is enhanced when specialization targets products with high global demand, contingent on a productive structure with a greater manufacturing share in GDP.

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Publication Details

Journal
Journal of International Trade & Economic Development
Published
2026-06-24
DOI
https://doi.org/10.1080/09638199.2026.2689584
Primary Topic
Global trade and economics
Type
article
Field-Weighted Citation Impact
0.00

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article

Does sectoral concentration matter for export competitiveness?

Luciane Franke, André Moreira Cunha, Marcos Tadeu Caputi Lélis
Journal of International Trade & Economic Development
Global trade and economics
article

Does sectoral concentration matter for export competitiveness?

Luciane Franke, André Moreira Cunha, Marcos Tadeu Caputi Lélis
article en

Abstract

This paper aims to contribute to a better understanding of the relationship between sectoral concentration and export competitiveness, using countries’ annual share of world exports (1995–2021) as a proxy for competitiveness. Results are also discussed for a specification estimated without China, treated as a structural outlier, to explore potential heterogeneity among developing economies. To achieve these objectives, we employ panel-data econometric techniques using G2SLS and IV-GMM estimators. Our main results reveal a positive relationship between sectoral specialization and export competitiveness. However, the impact of specialization is conditional upon (i) the degree of diversification relative to the global portfolio and (ii) the share of primary products in the export basket. Specifically, the findings indicate that international competitiveness is enhanced when specialization targets products with high global demand, contingent on a productive structure with a greater manufacturing share in GDP.

Journal of International Trade & Economic Development
Universidade Federal do Rio Grande do Sul (BR), Universidade do Vale do Rio dos Sinos (BR)
Conselho Nacional de Desenvolvimento Científico e Tecnológico
Openalex Percentile: Top 4%
Global trade and economics
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