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Economic Benefits of Export Diversification in Small States
Author:
Arnold McIntyre
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,
Mike Xin Linull

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,
Ke Wang
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Hanlei Yun
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Series:
IMF Working Papers
Volume/Issue:
Volume 2018: Issue 086
Language:
English
Publication Date:
11 Apr 2018
DOI:
https://doi.org/10.5089/9781484351017.001
ISBN:
9781484351017
ISSN:
1018-5941
Pages:
23
Keywords:
WP; center; diversification; small states; export diversification; economic growth; growth volatility; tourism; diversification measure; export markets diversification; digit export goods; export earnings instability; export basket; Exports; Export earnings; Comparative advantage; Global; Caribbean
Legal-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.
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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.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund
Volume 2018: Issue 086