The Challenge of Diversification in the Caribbean

Author/Editor:

A. Salehizadeh ; Peter Berezin ; Elcior Santana

Publication Date:

November 1, 2002

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

It is typically assumed that countries in the Caribbean suffer from a lack of output and export diversification. Contrary to this popular perception, we find no evidence that output variability is higher in Caribbean countries than in larger, more diversified, developing economies. In addition, we find no evidence that export earnings are more volatile in the Caribbean economies than elsewhere. In fact, export earnings are quite stable in the Caribbean, reflecting the fact the region is rather unique in that most of its export earnings are generated from service exports, which tend to be considerably less volatile than goods exports.

Series:

Working Paper No. 02/196

Subject:

English

Publication Date:

November 1, 2002

ISBN/ISSN:

9781451859973/1018-5941

Stock No:

WPIEA1962002

Format:

Paper

Pages:

53

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