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The Challenge of Diversification in the Caribbean

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  • A. Salehizadeh
  • Peter Berezin
  • Elcior Santana
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    Abstract

    It is typically assumed that countries in the Caribbean suffer from a lack of output and export diversification. Contrary to this popular perception, we find no evidence that output variability is higher in Caribbean countries than in larger, more diversified, developing economies. In addition, we find no evidence that export earnings are more volatile in the Caribbean economies than elsewhere. In fact, export earnings are quite stable in the Caribbean, reflecting the fact the region is rather unique in that most of its export earnings are generated from service exports, which tend to be considerably less volatile than goods exports.

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    Paper provided by International Monetary Fund in its series IMF Working Papers with number 02/196.

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    Length: 53
    Date of creation: 01 Nov 2002
    Date of revision:
    Handle: RePEc:imf:imfwpa:02/196
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    Keywords: Economic integration; Consumption; Caribbean; growth; diversification; risk-sharing; export earnings; service exports; aggregate consumption; export diversification; trade liberalization; General;

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    Cited by:

    1. KAMGNA, Severin Yves, 2007. "Diversification économique en Afrique centrale : Etats des lieux et enseignements
      [Economic diversification in central Africa]      ," MPRA Paper 9602, University Library of Munich, Germany.

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