Economics Department Working Paper Series
Working Paper Number
2019-09
Publication Date
2021
Abstract
We study the extent to which countries undergo structural change during and after episodes of sustained investment surges. In particular, we explore the evolution of trade flows, considering (i) exports sophistication or complexity, (ii) exports diversification, and (iii) capital goods imports. Using the episodes identified by Libman et al. (2019), we document the heterogeneous nature of these episodes and find that, while imports of capital goods increase, they are not systematically related to changes in sophistication, complexity and diversification of exports, at least for the available sample of 130 episodes over the period 1962-2014. High investment may often be a necessary but not sufficient condition for structural change.
DOI
https://doi.org/10.7275/22607583
License
UMass Amherst Open Access Policy
Recommended Citation
Hoyos, Mateo; Libman, Emiliano; and Razmi, Arslan, "The Structural Outcomes of Investment Surges" (2021). Economics Department Working Paper Series. 306.
https://doi.org/10.7275/22607583