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Trade and Employment From Myths to Facts - International Labour ...

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Chapter 7: <strong>Trade</strong> diversification: Drivers <strong>and</strong> impacts<br />

● Finally, we expect foreign direct investment (FDI) <strong>to</strong> also impact export structure.<br />

We thus introduce FDI in the analysis.<br />

Figure 7.4 presents the scatter plots of export diversification measured by the<br />

2006 Theil index versus the variables listed above. Scatter plots show correlations between<br />

the variables, whereas curves correspond <strong>to</strong> “smoother” non-parametric<br />

regression. In all scatter plots, a “full diamond” represents a developing country (i.e.<br />

low- <strong>and</strong> middle-income countries) <strong>and</strong> a “hollow circle” represents a developed<br />

country (i.e. high-income OECD <strong>and</strong> non-OECD countries). The sample includes<br />

129 <strong>to</strong> 150 countries depending on data availability.<br />

Figure 7.4: Average Theil indices in 2006 on each of the ten explana<strong>to</strong>ry variables<br />

in 2005<br />

Export Theil index<br />

2 4 6 8<br />

Export Theil index<br />

2 4 6 8<br />

0 2 4 6 8<br />

Infrastructure Index<br />

7.5 8 8.5 9 9.5<br />

Remoteness<br />

263

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