Does transport infrastructure spur export diversification and sophistication in the G-20 economies? An application of CS-ARDL

This study investigates the effect of transport infrastructure on export sophistication and diversification in the G-20 economies by applying the cross-sectional dependency autoregressive distributed lag (ARDL) approach. The empirical findings demonstrate that transport infrastructure spurs export sophistication and diversification in the short and long run. Besides, outward foreign direct investment, institutional quality and human capital contribute to exporting sophistication and diversification. Our results are robust in the common correlation effect, homogeneity and heterogeneity restrictions in the short- and long-run parameters, respectively.

Automated summary

This study investigates the impact of transport infrastructure on the technological content and diversification of export products in the G-20 economies. The results indicate that transport infrastructure plays a positive role in promoting the sophistication and diversification of export products. Additionally, outward foreign direct investment, institutional quality, and human capital also contribute to the technological content and diversification of export products.