02042cas a2200301 a 4500 AALejournalIMF022275 230101c9999 xx r poo 0 0eng d 5.00 USD 9781513571614 1018-5941 BD-DhAAL BD-DhAAL Salinas, Gonzalo. Proximity and Horizontal Policies : The Backbone of Export Diversification / Gonzalo Salinas. Washington, D.C. : International Monetary Fund, 2021. 1 online resource (45 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students The lack of a clear link between general economic fundamentals and export diversification indicators in the literature has fueled the believe that industrial policies are an absolute requisite to diversify exports. This paper, however, does find a strong statistical connection between horizontal policies and diversification by making two novel changes to traditional methodologies: using export categories that lead to diversification (for example, manufactures) as dependent variables, and using a gravity-equation regression setting. Proximity to other economies explains about a third of cross-country heterogeneity in targeted exports, and four fifths together with horizontal policies. Australia, Chile, and New Zealand emerge as new role models for diversification policies. Mode of access: Internet Economic Development imf Economic Growth imf Export Complexity imf Export Diversification imf International Trade imf IMF Working Papers; Working Paper ; No. 2021/064 Full text available on IMF http://elibrary.imf.org/view/journals/001/2021/064/001.2021.issue-064-en.xml IMF e-Library