Economic Benefits of Export Diversification in Small States
IMF Working Papers, April 11, 2018
Source details
- Canonical URL
- Economic Benefits of Export Diversification in Small States
Other formats
Bibliographic details
- Authors: Arnold McIntyre, Mike Xin Li, Ke Wang, Hanlei Yun
- Published: April 11, 2018
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781484351017.001
Study scope and methodology
- Focus: concepts of economic diversification with respect to exports (including service sectors) for small states.
- Sample: different groups of 34 small states.
- Period covered: 1990-2015.
- Paper type: IMF Working Paper.
Key findings
- More diversified small states experienced:
- lower output volatility, and
- higher average growth than most other small states.
- Export diversification has a more significant impact on reducing output volatility than on improving long run growth in small states.
- Findings are consistent with conventional economic theories.
Interpretation and nuance
- Diversification requires fundamental changes.
- Diversification should be contemplated in the context of a cohesive development strategy.
Policy implications and recommendations
- Prioritize export diversification strategies that include service sectors.
- Design cohesive development strategies that support fundamental structural changes required for diversification.
- Emphasize policies aimed at volatility reduction as a key benefit of diversification for small states.
Subject tags and keywords (as provided)
- Subject: Comparative advantage, Economic sectors, Export diversification, Export earnings, Exports, International trade, Tourism
- Keywords: Caribbean, center, Comparative advantage, digit export goods, diversification, diversification measure, economic growth, export basket, export diversification, Export earnings, export earnings instability, export markets diversification, Exports, Global, growth volatility, small states, tourism, WP
Content in this bundle
- Economic Benefits of Export Diversification in Small States, WP/18/86, April 2018