Abstract
Abstract This paper examines how product relatedness and the breadth of technological search affect the path-dependent development of export specializations across countries documented in prior research. The results of the econometric analysis in this paper show that broader technological search in an industry has a positive impact on the development of comparative advantages in the product lines it exports. The interplay between product relatedness and the scope of technological search has a two-edged character. On the one hand, broader technological search supports adjustments and consolidations of the export baskets on the extensive margin. This contributes to weaken path-dependency. On the other hand, it fosters the competitiveness of products that are related to current export specializations, and thereby promotes path-dependency on the intensive margin of trade. These results differ across countries with different levels of technological capabilities.
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