Managing Openness and Volatility : The Role of Export Diversification
As developing countries look to embrace an outward-oriented growth strategy, some may be concerned about the possibility that increased openness will be accompanied by increased volatility. However, although a more open economy may face increased v...
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| Format: | Brief |
| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2010/03/11999611/managing-openness-volatility-role-export-diversification http://hdl.handle.net/10986/10203 |
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okr-10986-102032021-04-23T14:02:49Z Managing Openness and Volatility : The Role of Export Diversification Haddad, Mona Lim, Jamus Jerome Saborowski, Christian COMPARATIVE ADVANTAGE DEMAND SHOCKS DEVELOPED COUNTRIES DEVELOPING COUNTRIES DEVELOPMENT STRATEGY DIVERSIFICATION BENEFITS DOMESTIC MARKET DOMESTIC PRODUCERS ECONOMIC MANAGEMENT ECONOMIC POLICY ECONOMIC RESOURCES EMPIRICAL MODEL EXPORT BASE EXPORT DIVERSIFICATION EXPORT MARKET EXPORT SECTOR EXPORT SHARE EXPORT SHARES EXPORTS FINANCIAL CRISIS FOREIGN MARKET FOREIGN MARKETS FOREIGN TECHNOLOGY GOVERNMENT ACTION GROWTH VOLATILITY HOME MARKET IMPORT MARKETS INCOME GROUP INCOMES INSURANCE INTERMEDIATE INPUTS INTERNATIONAL DIVERSIFICATION INTERNATIONAL TRADE INVESTMENT PORTFOLIO LIBERALIZATION MARKET ACCESS MARKET CONDITIONS MARKET DIVERSIFICATION MARKET ENTRY NATIONAL INCOME NEW MARKETS OPEN ECONOMY OUTPUT OVERALL VOLATILITY PER CAPITA INCOMES POLICY MAKERS POLICY RESEARCH POVERTY REDUCTION PRIVATE SECTOR RED TAPE RISK MANAGEMENT SIGNIFICANT EFFECT SPECIALIZATION TERMS OF TRADE TRADE FACILITATION TRADE OPENNESS VOLATILITY As developing countries look to embrace an outward-oriented growth strategy, some may be concerned about the possibility that increased openness will be accompanied by increased volatility. However, although a more open economy may face increased volatility in its terms of trade, openness confers diversification benefits. In this note, authors argue that export diversification is a key mitigating factor for the total effect of openness on volatility. More specifically, authors show that most developing countries fall on the "good" side of a diversification threshold, where they are likely to experience less volatility as they pursue a strategy of greater openness. 2012-08-13T10:43:11Z 2012-08-13T10:43:11Z 2010-03 http://documents.worldbank.org/curated/en/2010/03/11999611/managing-openness-volatility-role-export-diversification http://hdl.handle.net/10986/10203 English Economic Premise; No. 6 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Brief Publications & Research |
| repository_type |
Digital Repository |
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Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
COMPARATIVE ADVANTAGE DEMAND SHOCKS DEVELOPED COUNTRIES DEVELOPING COUNTRIES DEVELOPMENT STRATEGY DIVERSIFICATION BENEFITS DOMESTIC MARKET DOMESTIC PRODUCERS ECONOMIC MANAGEMENT ECONOMIC POLICY ECONOMIC RESOURCES EMPIRICAL MODEL EXPORT BASE EXPORT DIVERSIFICATION EXPORT MARKET EXPORT SECTOR EXPORT SHARE EXPORT SHARES EXPORTS FINANCIAL CRISIS FOREIGN MARKET FOREIGN MARKETS FOREIGN TECHNOLOGY GOVERNMENT ACTION GROWTH VOLATILITY HOME MARKET IMPORT MARKETS INCOME GROUP INCOMES INSURANCE INTERMEDIATE INPUTS INTERNATIONAL DIVERSIFICATION INTERNATIONAL TRADE INVESTMENT PORTFOLIO LIBERALIZATION MARKET ACCESS MARKET CONDITIONS MARKET DIVERSIFICATION MARKET ENTRY NATIONAL INCOME NEW MARKETS OPEN ECONOMY OUTPUT OVERALL VOLATILITY PER CAPITA INCOMES POLICY MAKERS POLICY RESEARCH POVERTY REDUCTION PRIVATE SECTOR RED TAPE RISK MANAGEMENT SIGNIFICANT EFFECT SPECIALIZATION TERMS OF TRADE TRADE FACILITATION TRADE OPENNESS VOLATILITY |
| spellingShingle |
COMPARATIVE ADVANTAGE DEMAND SHOCKS DEVELOPED COUNTRIES DEVELOPING COUNTRIES DEVELOPMENT STRATEGY DIVERSIFICATION BENEFITS DOMESTIC MARKET DOMESTIC PRODUCERS ECONOMIC MANAGEMENT ECONOMIC POLICY ECONOMIC RESOURCES EMPIRICAL MODEL EXPORT BASE EXPORT DIVERSIFICATION EXPORT MARKET EXPORT SECTOR EXPORT SHARE EXPORT SHARES EXPORTS FINANCIAL CRISIS FOREIGN MARKET FOREIGN MARKETS FOREIGN TECHNOLOGY GOVERNMENT ACTION GROWTH VOLATILITY HOME MARKET IMPORT MARKETS INCOME GROUP INCOMES INSURANCE INTERMEDIATE INPUTS INTERNATIONAL DIVERSIFICATION INTERNATIONAL TRADE INVESTMENT PORTFOLIO LIBERALIZATION MARKET ACCESS MARKET CONDITIONS MARKET DIVERSIFICATION MARKET ENTRY NATIONAL INCOME NEW MARKETS OPEN ECONOMY OUTPUT OVERALL VOLATILITY PER CAPITA INCOMES POLICY MAKERS POLICY RESEARCH POVERTY REDUCTION PRIVATE SECTOR RED TAPE RISK MANAGEMENT SIGNIFICANT EFFECT SPECIALIZATION TERMS OF TRADE TRADE FACILITATION TRADE OPENNESS VOLATILITY Haddad, Mona Lim, Jamus Jerome Saborowski, Christian Managing Openness and Volatility : The Role of Export Diversification |
| relation |
Economic Premise; No. 6 |
| description |
As developing countries look to embrace
an outward-oriented growth strategy, some may be concerned
about the possibility that increased openness will be
accompanied by increased volatility. However, although a
more open economy may face increased volatility in its terms
of trade, openness confers diversification benefits. In this
note, authors argue that export diversification is a key
mitigating factor for the total effect of openness on
volatility. More specifically, authors show that most
developing countries fall on the "good" side of a
diversification threshold, where they are likely to
experience less volatility as they pursue a strategy of
greater openness. |
| format |
Publications & Research :: Brief |
| author |
Haddad, Mona Lim, Jamus Jerome Saborowski, Christian |
| author_facet |
Haddad, Mona Lim, Jamus Jerome Saborowski, Christian |
| author_sort |
Haddad, Mona |
| title |
Managing Openness and Volatility : The Role of Export Diversification |
| title_short |
Managing Openness and Volatility : The Role of Export Diversification |
| title_full |
Managing Openness and Volatility : The Role of Export Diversification |
| title_fullStr |
Managing Openness and Volatility : The Role of Export Diversification |
| title_full_unstemmed |
Managing Openness and Volatility : The Role of Export Diversification |
| title_sort |
managing openness and volatility : the role of export diversification |
| publisher |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2010/03/11999611/managing-openness-volatility-role-export-diversification http://hdl.handle.net/10986/10203 |
| _version_ |
1764412231136575488 |