The real exchange rate and services export diversification

Purpose The relationship between real exchange rate and services export diversification is at the heart of this study. Design/methodology/approach analysis performed using a sample 113 countries over period 1985–2014, 2-step system Generalized Method Moments (GMM) approach. uses both Theil index Herfindahl–Hirschman concentration. Findings shows that full sample, effective appreciation induces greater diversification. This outcome applies to high-income developing countries. However, positive effect on concentration lower in least developed than other Finally, tax haven depends indicator concentration, as for negative Research limitations/implications These findings highlight strong influence policies countries' path Originality/value To best authors' knowledge, topic being addressed empirical literature first time.