This paper examines structural change in global trade and its impact in the development of manufacturing shares across countries
over time. It focuses on the dynamics of variety creation and destruction in exports and links the observed outcomes to the
development of manufacturing shares across countries. The results show that while there is an inverse-U-shaped relationship
with income per capita levels across countries of manufacturing shares, a specialisation in product lines with a high likelihood
of displacing other exports and a high propensity to induce a clustering in the uptake of exports in related product lines
is positively associated with manufacturing shares. Controlling for income levels more complex export portfolios are weakly
associated with smaller manufacturing shares. These effects are mitigated when these parameters combine at the extreme ends
of their values range.
JEL-Codes:I25, O11, O14
Keywords:Structural Change in Trade, Manufacturing Share
Research group:Industrial, Innovation and International Economics