Geographical Diversification of Developing Country Exports.” World Development 38(9

This paper shows that export costs, tariffs, and international transport costs are all important de-terminants of geographical export diversification in a sample of 123 developing countries. A 10% reduction in any one of these factors produces a 5%-6 % increase in the number of foreign markets en-tered. Moreover, there is evidence that these impacts differ significantly across countries and sectors: geographical export diversification is more sensitive to export costs and transport costs in more dif-ferentiated sectors, and to export costs in lower income countries. These results are generally robust to alternative specifications, and instrumental variables estimation