Working Paper #2022-011
Some new views on product space and related diversification
We aim to contribute to the literature on product space and
diversification by proposing a number of extensions of the current
literature: (1) we propose that the alternative but related idea of a
country space also has empirical and theoretical appeal; (2) we argue
that the loss of comparative advantage should be an integral part of
(testing the empirical relevance of) the product space idea; (3) we
propose several new indicators for measuring relatedness in product
space; and (4) we propose a non-parametric statistical test based on
bootstrapping to test the empirical relevance of the product space idea.
- Keywords
-
- Diversification
- specialization
- product space
- country space
- path dependence of specialization
- relatedness
- JEL codes
-
- F14
- F63
- O11
Cite this as
APA 7th ed.Nomaler, Ö., & Verspagen, B. (2022). Some new views on product space and related diversification (UNU-MERIT Working Paper No. 2022-011). UNU-MERIT. https://unu-merit.nl/publications/working-papers/abstract/?id=9269