Should developing countries focus on diversifying their export basket or should they instead specialize their exports according to their existing comparative advantage? In this paper we attempt to answer this question by reviewing the literature on export diversification and specialization, by...

The core idea behind the paper is that trade policy matters for the organization of global value chains, a notion largely neglected by economists but which has important implications for our understanding of trade and the international transmission of trade policy shocks. We develop a...