Structural Transformation and Patterns of Comparative Advantage in the Product Space

  title={Structural Transformation and Patterns of Comparative Advantage in the Product Space},
  author={Ricardo Hausmann and Bailey Klinger},
  journal={International Trade},
In this paper we examine the product space and its consequences for the process of structural transformation. We argue that the assets and capabilities needed to produce one good are imperfect substitutes for those needed to produce other goods, but the degree of asset specificity varies widely. Given this, the speed of structural transformation will depend on the density of the product space near the area where each country has developed its comparative advantage. While this space is… 
The Product Space: What Does it Say About the Opportunities for Growth and Structural Transformation of Sub-Saharan Africa?
In this paper we look at the economic development of Sub-Saharan Africa (SSA) in the context of structural transformation. We use Hidalgo et al.'s (2007) concept of product space to show the
The Product Space Revisited: China's Trade Profile
The concept of product space has encountered broad interest within the development community, as an analytical tool against which to assess countries’ potential to diversify their production and
Industry similarities, comparative advantage and structural transformation : the case of Portugal, 2005
this paper provides an empirical assessment of the “sophistication” of the Portuguese pattern of trade in 2005 and its possible implications for the process of structural transformation. Using trade
The Product Space Conditions the Development of Nations
This study studies this network of relatedness between products, or “product space,” finding that more-sophisticated products are located in a densely connected core whereas less-sophile products occupy a less-connected periphery.
Operationalizing the Product Space: A Road Map to Export Diversification
Much of industrial development is a gradual and path-dependent process. Countries move from the products that they already produce to others that are similar, in terms of capital requirements,
Can Structural Transformation Be Induced?: Upgrading Comparative Advantages and Climbing the Value Chain in Singapore
  • Economics
  • 2015
Since the 1800s, the theory of comparative advantage has been extolled for illustrating the gains from trade when countries specialise based on their relative strengths. Using the standard
Product Space Analysis of the Exports of Brazil
This paper applies several of the product space tools of Hausmann, Klinger, and Hidalgo to explain and predict the pattern of Brazil’s exports. First, we calculate an annual measure of distance
Structural Transformation of Exports in a Product Space Model
The research paper deals with an export structural transformation model providing for a transition from the production and exports of goods with low value added to the production and exports of goods
Structural transformation and specialization patterns in the product space: assessing China and India
This paper assesses the specialization patterns of China and India, studies the goods that are related to the core of capabilities of the countries, and then investigates the products that allow the
How Many Dimensions Do We Trade in? Product Space Geometry and Latent Comparative Advantage
This paper proposes a new quantitative implementation of Balassa's idea that export composition and revealed comparative advantage inform the relationship between endowments in domestic factors of


Inter-Industry Technology Flows and Productivity Growth
An unusually rich data set was tapped to explore the relationship between research and development (R and D) and productivity growth. The most-important finding is that, with disaggregated data, the
Issues in assessing the effect of interindustry R&D spillovers
This paper aims to clarify three issues concerning the weighting methodol ogy generally used to evaluate interindustry RD the similarity between input-output (IO), technology flows and technological
Paths of Development in the Three-Factor, n-Good General Equilibrium Model
The three-factor, n-good model is displayed graphically and tested empirically. The three-dimensional endowment vectors and expansion paths are represented by points in an endowment triangle.
Product Development and International Trade
We develop a multicountry, dynamic general equilibrium model of product innovation and international trade to study the creation of comparative advantage through research and development and the
Across-Product Versus Within-Product Specialization in International Trade
This paper exploits product-level U. S. import data to test trade theory. Although the United States increasingly sources the same products from both high- and low-wage countries, unit values within
Quality Ladders in the Theory of Growth
We develop a model of repeated product improvements in a continuum of sectors. Each product follows a stochastic progression up a quality ladder. Progress is not uniform across sectors, so an
Learning by Doing and the Dynamic Effects of International Trade
Using an endogenous growth model in which learning by doing, although bounded in each good, exhibits spillovers across goods, this paper investigates the dynamic effects of international trade.
Input-output analysis: frontiers and extensions
Forewords W.Isard & R.E.Kuenne Preface M.L.Lahr & E.Dietzenbacher Introduction E.Dietzenbacher & M.L.Lahr FRONTIERS Interindustry Linkages: The Flow Network of a Physical Input-Output Tables (PIOT):
Technological Opportunity and Spillovers of R&D: Evidence from Firms&Apos; Patents, Profits and Market Value
This paper presents evidence that firms' patents, profits and market value are systematically related to the"technological position" of firms' research programs. Further, firms are seen to "move" in
What you export matters
When local cost discovery generates knowledge spillovers, specialization patterns become partly indeterminate and the mix of goods that a country produces may have important implications for economic