The Challenge of Diversification in the Caribbean
November 1, 2002
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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.
Subject: Agricultural commodities, Commodities, Consumption, Education, Export earnings, Income, International trade, National accounts
Keywords: Agricultural commodities, Caribbean, Caribbean country, construction company, consumption, developing country, diversification, Export earnings, firms in core market, foreign direct investment, growth, Income, informatics firm, information processing company, information technology company, North America, physical capital, production diversification, rate of return, risk pooling, risk-sharing, telecommunications company, WP
Pages:
53
Volume:
2002
DOI:
Issue:
196
Series:
Working Paper No. 2002/196
Stock No:
WPIEA1962002
ISBN:
9781451859973
ISSN:
1018-5941
