Are OECD Countries Converging in Export Diversification? Evidence from PANIC-Fourier Panel Unit Root Test

Ozekicioglu H., Topuz H., Kazak H., Kilic C., Akcan A. T.

SUSTAINABILITY, vol.17, no.2, pp.606-624, 2025 (SCI-Expanded, SSCI, Scopus)

  • Publication Type: Article / Article
  • Volume: 17 Issue: 2
  • Publication Date: 2025
  • Doi Number: 10.3390/su17020606
  • Journal Name: SUSTAINABILITY
  • Journal Indexes: Science Citation Index Expanded (SCI-EXPANDED), Social Sciences Citation Index (SSCI), Scopus, Aerospace Database, Agricultural & Environmental Science Database, CAB Abstracts, Communication Abstracts, Food Science & Technology Abstracts, Geobase, INSPEC, Metadex, Veterinary Science Database, Directory of Open Access Journals, Civil Engineering Abstracts
  • Page Numbers: pp.606-624
  • Akdeniz University Affiliated: Yes

Abstract

This study examines whether OECD countries have converged over time in terms of export diversification. Focusing on the period 1995–2023, the study employs a new Fourier function-enhanced panel unit root test that takes into account gradual changes instead of sudden breaks. The findings show that more than half of OECD countries have not converged in terms of export diversification. Export diversification plays an important role in achieving economic growth and development as well as long-term sustainability goals. In this context, the study provides critical data for policymakers in support of sustainable development goals. The results point to the need to reassess the economic and environmental impacts of export diversification policies in OECD countries.