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The Challenge of Diversification in the Caribbean

Author

Listed:
  • Mr. A. Salehizadeh
  • Mr. Peter Berezin
  • Mr. Elcior Santana

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.

Suggested Citation

  • Mr. A. Salehizadeh & Mr. Peter Berezin & Mr. Elcior Santana, 2002. "The Challenge of Diversification in the Caribbean," IMF Working Papers 2002/196, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2002/196
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    References listed on IDEAS

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    Cited by:

    1. International Monetary Fund, 2004. "Union of the Comoros: Selected Issues and Statistical Appendix," IMF Staff Country Reports 2004/233, International Monetary Fund.
    2. 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.
    3. Arnold McIntyre & Mike Xin Li & Ke Wang & Hanlei Yun, 2018. "Economic Benefits of Export Diversification in Small States," IMF Working Papers 2018/086, International Monetary Fund.

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