Education and the Journey to the Core: Path-dependence or Leapfrogging

Publication | March 2014

This paper investigates the role that education plays in helping countries develop comparative advantage in new products.

This paper finds that (i) acquiring new comparative advantage is a path-dependent process and, therefore, leapfrogging into complex products is very unlikely; (ii) education helps reduce this path-dependence; (iii) education quality matters more than education quantity; and (iv) high-quality basic education matters for export diversification.

Contents 

  • Abstract
  • Introduction
  • Data, Definitions, Framework, and Hypothesis
  • Results
  • Conclusions
  • Appendix
  • References