Export Product Concentration and Poverty Volatility in Developing Countries

Abstract

ABSTRACT The present article has examined the poverty volatility effect of export product concentration using a panel dataset of 120 developing countries over the period of 1980 to 2014. Results, based on the feasible generalized least squares estimator, suggest that export product concentration tends to induce greater poverty volatility in low-income countries but reduces poverty volatility in relatively advanced developing countries. These outcomes reflect the fact that export product concentration reduces poverty volatility in countries that improve their manufactured export performance. Finally, the greater the level of export product diversification (or economic complexity), the higher the degree of poverty volatility reduction.