Trade liberalization and export diversification

  title={Trade liberalization and export diversification},
  author={Anwesha Aditya and R. Bhatt Acharyya},
The paper examines the implications of tariff reductions for diversification of export basket across and within industries measured in terms of larger sets of homogeneous goods and horizontally-differentiated varieties in two country world. In a synthesis of analytical structures of Dornbusch, Fisher and Samuelson (1977) and Krugman (1979) we establish that unilateral tariff reduction may make the liberalizing country's exports diversified both across and within sectors whereas the trading… CONTINUE READING

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