"This paper re-explores the relation between a country's level of wealth and the mix of products it exports. We argue … that both are simultaneously determined by countries' capabilities i.e. by countries' productivity and quality levels for …. This suggests that the main challenge for low-income countries is to raise quality and productivity in their existing …

We weigh into the debate about whether rising productivity is ever a consequence rather than a cause of exporting …. Exporting and investing to raise productivity are complimentary activities. For lower-productivity firms, incurring the fixed … foreign tariffs will induce these firms to simultaneously export and invest in productivity. In contrast, lower foreign …