The Impact of Export Orientation to Developing Countries Markets on Export Diversification - Applied Study on a Sample of Emerging and Developing Economies (1995-2013) -

Abstract

The study aims to study and test the impact of exports to the markets of developing countries on export diversification. The study was applied on twenty (20) emerging and developing countries during the period 1995-2013 using the models of the panel data. The study showed that the best statistical model is the fixed impacts model for the years, however, the relationship between the differences in the ratio of exports to the markets of developing countries and the export diversification index was positive during the period (1995-2005), which means that exports to these markets do not affect positively the diversification of exports. In the period (2006-2013), the relationship between the two variables was negative, which mean that raising the volume of exports to developing countries had a positive impact on export diversification. As for individual countries, this relationship was negative in 14 countries, which means that exports to the developing and emerging markets have a positive effect on export diversification in these countries, while the relationship was positive in six countries including Algeria, In other words, exports to these markets had no real impact on export diversification.