Institutions Rule in Export Diversity

We used the data of 133 countries to explore determinants export diversity among candidate variables that are clearly exogenous or endogenous but with a well-established instrument. These candidates include geography, resource abundance, and institutional quality. Our results suggest quality is important in determining diversity, country better institutions has more diversified structure. Once controlled for instrumented European settler mortality, such as geography which significantly determine baseline regression, no longer significant. The still robust even using alternative measures They also indicate mechanism whereby largely been presented under guise natural abundance geography. Therefore, some extent, “natural curse” not curse, simply two sides same coin.