Economic Benefits of Export Diversification in Small States

Author/Editor:

Arnold McIntyre ; Mike Xin Li ; Ke Wang ; Hanlei Yun

Publication Date:

April 11, 2018

Electronic Access:

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Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary:

The paper considers concepts of economic diversification with respect to exports (including service sectors) for small states. We assessed the economic performance of different groups of 34 small states over the period of 1990-2015 and found those more diversified experienced lower output volatility and higher average growth than most other small states. Our findings are consistent with conventional economic theories but we found that export diversification has a more significant impact on reducing output volatility than improving long run growth in small states. Diversification requires fundamental changes and should be contemplated in the context of a cohesive development strategy.

Series:

Working Paper No. 18/86

Subject:

English

Publication Date:

April 11, 2018

ISBN/ISSN:

9781484351017/1018-5941

Stock No:

WPIEA2018086

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

23

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