Export Diversification in Low-Income Countries and Small States: Do Country Size and Income Level Matter?

May 24, 2019

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Dongyeol Lee, and Huan Zhang. Export Diversification in Low-Income Countries and Small States: Do Country Size and Income Level Matter?, (USA: International Monetary Fund, 2019) accessed November 23, 2024

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

Export structure is less diversified in low-income countries (LICs) and especially small states that face resource constraints and small economic size. This paper explores the potential linkages between export structure and economic growth and its volatility in LICs and small states, using a range of indices of export concentration differing in the coverage of industries. The empirical analysis finds that export diversification may promote economic growth and reduce economic volatility in these countries. Furthermore, the analysis demonstrates that the economic benefits of export diversification differ by country size and income level—there are bigger benefits for relatively larger and poorer countries within the group of LICs and small states.

Subject: Export diversification, Export performance, Exports, Government consumption, Personal income

Keywords: Diversification, Export, Export concentration, WP

Publication Details

Pages:

24
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2019/118
Stock No:

WPIEA2019118
ISBN:

9781498315654
ISSN:

1018-5941

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