The Repository @ St. Cloud State

Open Access Knowledge and Scholarship

Date of Award


Culminating Project Type


Degree Name

Applied Economics: M.S.




School of Public Affairs

First Advisor

Nimantha Manamperi

Second Advisor

Artatrana Ratha

Third Advisor

Gareth John

Creative Commons License

Creative Commons License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.


This study uses panel data analysis across large cross-sections to identify the effects of covariates of economic growth by introducing import diversification into the growth model. It further analyzes the growth effects of diversification of import portfolio based on the country of origin using trade openness and institutional quality as some of the control variables. This is obtained by performing dynamic panel data estimation using the Generalized Methods of Moment (GMM) from which the basic specification of our model is decided. I further compare the diversification across two slices: developed countries and developing countries. I also run OLS and Fixed Effects estimates and see how the variables perform in these three different models. Overall, a statistically significant effect of import diversification is seen on growth. However, the magnitude of growth effects of import diversification is higher for developing countries than the developed countries. The effect of import diversification for developing countries is more than twice the effect of developed countries.