Trade openness reduces growth volatility when countries are well diversified
This paper addresses the mechanisms by which trade openness affects growth volatility. Using a diverse set of export concentration measures, we present strong evidence pointing to an important role for export diversification in conditioning the effect of trade openness on growth volatility. Indeed, the effect of openness on volatility is shown to be negative for a significant proportion of countries with relatively diversified export baskets.
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Volume (Year): 46 (2013)
Issue (Month): 2 (May)
Pages: 765-790
| Handle: | RePEc:cje:issued:v:46:y:2013:i:2:p:765-790 |
| Contact details of provider: | Postal: Canadian Economics Association Prof. Steven Ambler, Secretary-Treasurer c/o Olivier Lebert, CEA/CJE/CPP Office C.P. 35006, 1221 Fleury Est Montréal, Québec, Canada H2C 3K4 Web page: http://economics.ca/cje/ Email: More information through EDIRC
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References listed on IDEAS
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