Evolution of World Exports: Based on Mutualistic Environment within a Product Space

摘要

Exploring the process of a country's development pattern is economists' long-term research problem. Most of the current research has been conducted by empirical research to analyze the relationship between economic growth and trade data. Hidalgo put forward the conception of product space and simulated the move of a country's exports' advantage within a product space. However, there exists some limitations in their research. And the purpose of the paper is to improve the product space and evolution model and to introduce the government policy into the model. The result shows that the policy for various types of exports will lead a country's subsequent economic growth into different convergence level, and therefore it is critical for a country to choose the appropriate development direction.