Export Diversification in ASEAN and SAARC Regions: Exploring Trends Patterns and Determinants Through Empirical Investigation

Abstract

Export product concentration is common in developing nations, where raw materials and semi-manufactured commodities face rigid demand in international markets. This leads to the monopolisation of exports, particularly when targeting the developed world. Association of Southeast Asian Nations (ASEAN) and South Asian Association for Regional Cooperation (SAARC) nations have prioritised diversification to boost exports and per capita income, globalising their economies. The normalised Hirschman index is employed to analyse the determinants influencing the diversification of exports in ASEAN and SAARC countries from 2018 to 2021. Except for the fuel intensity variable, the results show that structural transformation, competitive advantages, industrial sector expansion, institutional capability, local investment development, financial stability and overall economic performance positively promote export diversification intensity. The key result is that institutional strength helps nations rapidly diversify their exports, highlighting the importance of structural transformation in boosting exports and globalising economies.

Citation

Wani, N.U.H. (2024), "Export Diversification in ASEAN and SAARC Regions: Exploring Trends Patterns and Determinants Through Empirical Investigation", Policy Solutions for Economic Growth in a Developing Country, Emerald Publishing Limited, Leeds, pp. 83-103. https://doi.org/10.1108/978-1-83753-430-220241005