The Micro-D classification: a new approach to identifying differentiated exports

Bernini, Federico, González, Julia, Hallak, Juan Carlos and Vicondoa, Alejandro (2018) The Micro-D classification: a new approach to identifying differentiated exports. Economía, 18 (2). 1 - 27. ISSN 1529-7470

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Abstract

It is common to assess the evolution of a country’s export structure as a manifestation of the extent of progress or stagnation in its development process. Performing this exercise requires determining which features of exported products denote higher stages in that process. We argue that exports of differentiated products, especially when sold to developed countries, signal the acquisition of valuable knowledge that reflects development progress. We propose a new classification, denoted Micro-D, that works at the finest aggregation level in customs nomenclatures to provide a more precise identification of differentiated products. Specifically, the classification uses package size as a proxy for product differentiation to identify differentiated food and beverage exports. Thus, it is especially—though not exclusively—suited to capturing export upgrading in land-abundant developing countries. We apply the Micro-D classification to Argentina in 1998–2011 to deliver a new picture of the country’s sources of export upgrading in this period.

Item Type:	Article
Official URL:	https://economia.lse.ac.uk/
Additional Information:	© 2018 LACTEA
Divisions:	LSE
Subjects:	H Social Sciences > HC Economic History and Conditions H Social Sciences > HF Commerce
JEL classification:	F - International Economics > F1 - Trade > F10 - General F - International Economics > F1 - Trade > F14 - Country and Industry Studies of Trade O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O14 - Industrialization; Manufacturing and Service Industries; Choice of Technology
Date Deposited:	04 Jul 2024 23:13
Last Modified:	12 Dec 2024 04:15
URI:	http://eprints.lse.ac.uk/id/eprint/123394

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