Cover -- Title Page -- Contents -- Foreword -- Preface -- Contributors -- Editors -- Other Contributing Authors -- Abbreviations -- Executive Summary -- CHAPTER 1 Breaking into New Markets: Overview -- Introduction -- The Extent of Diversification in Developing Countries -- Does Diversification Matter? Export Diversification and Development -- A Digression: Does the Sophistication of Exports Matter? -- Overcoming Obstacles to Diversification: Lessons from Experience -- Market Failures in the Discovery Phase -- Market Imperfections in Other Phases of the Export Cycle -- Services: A Potentially Important Source of Export Diversification -- Tourism's Potential for Encouraging Diversification of Foreign Exchange Earnings -- The Role of Export Promotion Agencies in Posting Export Growth -- Export Processing Zones: Mixed Record -- Conclusion: Diversification is a Worthy but not Overriding Policy Objective -- A Portfolio Approach to Addressing Constraints to Export Diversification -- The First Order of Business: Policies That Affect All Firms and Consumers -- The incentives regime -- Lowering the costs of backbone services and of doing business in general -- Proactive policies to support trade -- Using Subsidies to Specific Industries to Promote Structural Change -- One Size Does Not Fit All -- Notes -- References -- PART 1 Does Diversification Matter? -- Introduction -- CHAPTER 2 Trade Structure and Growth -- Introduction -- Natural Resource Abundance and Growth -- Export Concentration and Growth -- Estimation Techniques -- Estimation -- Findings -- Resource Abundance Seems Not to Influence Growth -- But Investment, Terms of Trade, and Macroeconomic Stability Are Important -- Reliance on Only a Few Exports Has Greater Negative Consequences for Growth -- Conclusions and Policy Implications -- Notes -- References.

CHAPTER 3 Export Diversification and Economic Growth -- Introduction -- Theory, Concepts, and Country Examples -- Empirical Analysis -- Solow Growth Model -- Results -- Conclusion -- Annex: Econometric Methodology and Data -- Robustness Test -- Notes -- References -- CHAPTER 4 Exposure to External Shocks and the Geographical Diversification of Exports -- Introduction -- Literature Overview -- Measuring Exposure to External Shocks -- Singling Out Exposure to Country-Specific External Shocks -- Terms-of-Trade Volatility and Product-Specific External Shocks -- Diversification of Exports -- Export Diversification and Exposure to External Shocks -- Geographical Diversification, Product Diversification, and the Exposure to External Shocks -- Conclusions -- Notes -- References -- CHAPTER 5 Diversification, Innovation, and Imitation of the Global Technological Frontier -- Introduction -- A Framework for Discovery and Imitation -- Data and Methodology -- Results -- Testing the Model -- Conclusions and Policy Implications -- Notes -- References -- CHAPTER 6 Watching more than the Discovery Channel to Diversify Exports -- Introduction -- Old-Growth Exports Versus New-Growth Exports -- Exploiting the Extensive Margin -- Example: Albania Reaches Fewer Markets than Does the Czech Republic -- Possible Market Interventions to Boost the Rapid-Growth Phase -- Conclusions: Policies and Open Questions -- Annex 6A: Country Coverage -- Annex 6B: Decomposition of Export Growth Over A Different Time Period -- Notes -- References -- PART 2 Policies: Lessons from Experience -- Introduction -- CHAPTER 7 The Life and Death of Trade Flows: Understanding the Survival Rates of Developing-Country Exporters -- Introduction -- The Frequency of Zeroes in Bilateral Trade Matrices -- Trade Theory, Zeroes in Bilateral Trade Matrices, and Entry and Exit in Trade Markets.

Exporting Firms' Lack of Information on Costs -- Buyers Lack of Information on Exporters -- The Implications of Contract Enforcement -- Search Costs and Policy Consistency -- Product Quality -- Empirical Support for Theories Explaining the Prevalence of Zeroes in Bilateral Trade Matrices -- Data Sets Employed -- Description of Survival Rates -- Investigation of Factors Affecting Export Survival -- Conclusions and Policy Implications -- Annex 7A: Exporter and Importer Coverage -- Annex 7B: Technical Annex -- Dealing with Censored Data in Econometric Estimates -- Defining Indicators of Export Survival -- Dependent Variable Used in Investigating the Determinants of Export Survival -- Annex 7C: Results of Hazard Rate Estimations -- Notes -- References -- CHAPTER 8 Promoting New Exports: Experience from the Middle East and North Africa -- Introduction -- Export Diversification in "Resource-Poor" Countries in the Region -- Case Studies: Methodology -- Triggers for New Export Activities -- Factors Constraining Development of New Export Activities -- Diffusion and the Fear of Imitation -- Designing Proactive Policies to Encourage Experimentation and Imitation -- Conclusion -- Notes -- References -- CHAPTER 9 Exporting Services -- Introduction -- Trade in Services: The Emerging Pattern and its Determinants -- Determinants of Comparative Advantage -- Some Examples of Constraints to Growth in Services Trade -- Successful Engagement: The Case of Brazil -- Countries that are not Participating: The Case of Zambia -- Opportunities Beyond Cross-Border Trade: Addressing the Impediments -- Consumption Abroad of Health Care -- Moving People to Deliver Services -- Regulatory Impediments to Trade -- Qualification and Licensing Requirements for Professionals -- Privacy Law -- Offshore Financial Services -- Conclusion -- Notes -- References.

CHAPTER 10 Tourism as a Strategy to Diversify Exports: Lessons from Mauritius -- Introduction -- Tourism as a Tool for Diversification -- A Tool not Available to All -- Security and Stability -- Natural Endowments -- Ensuring the Sustainability of Tourism -- The Impact of Tourism on the Domestic Economy -- The Direct and Indirect Impact of Tourism -- A Vehicle for Exports and Diversification in Other Sectors -- Conclusion -- References -- CHAPTER 11 Fostering Productive Diversification Through Tourism -- Introduction -- Acquisition of Information about Foreign Demand -- Experimentation with New Products -- Establishment and Postestablishment -- Tourism and Export Diversification: Panel Data Evidence -- The Role and Determinants of Tourism Links -- Identifying What Matters Most: Cross-Country Evidence -- Policies to Promote Diversification Through Tourism -- References -- CHAPTER 12 Export Promotion Agencies: Strategies and Impacts -- Introduction -- The Rationale for EPAs and Previous Analysis -- A Survey-Based Assessment of EPAs -- EPA Budget Size and Exports -- EPA Institutional Characteristics and Exports -- Conclusions -- References -- CHAPTER 13 Special Economic Zones and Economic Diversification: Some Evidence from South Asia -- Introduction -- Characteristics of Special Economic Zones in South Asia -- Trade Performance and Export Diversification -- Firm-Level Perceptions of Sez Performance -- Concluding Remarks -- References -- CHAPTER 14 Infrastructure and Diversifying Through Better Products -- Introduction -- Exporters and Infrastructure Reform -- Infrastructure and Manufacturing Productivity -- Infrastructure and Trade Costs -- Summing Up: Infrastructure and Unit Values -- Empirical Strategy and Data -- Empirical Strategy -- The Country Setting and the EBRD Indexes -- Other Data.

Results: Higher Unit Values Associated with Better Infrastructure -- Concluding Remarks -- Notes -- References -- Index -- Back Cover.