Relationship between Export Diversification and Economic Growth

Nowadays, export diversification has become one of the most important economic objectives of development strategies in developing countries. For various reasons, such as prevent instability in export price of primary products in world markets and thus reduce the fluctuations in the terms of trade of them in compared with industrial goods, dynamic benefits from exports of various goods and increased productivity of production factors, economic growth will increase. The main purpose of this study is investigation role of export diversification on economic growth in selected developing countries during the period 2000 to 2009. Therefore, we investigate the relationship between per capita gross domestic product, physical capital stock, labor force, export diversification index. The results show that export diversification has significant positive impact on economic growth.