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Export diversification as a counter to export instability: The example of Columbia

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  • Mayer, Thomas

Abstract

This paper examines the income and allocation effects of an appropriate export diversification policy by means of a computable general equilibrium model for Colombia. This kind of policy is often envisaged as a counter to unstable export earnings which are considered to be detrimental to economic growth. The results show that irrespective of the reduction of the costs of export instability an appropriate diversification of exports raises income in the Colombian economy.

Suggested Citation

  • Mayer, Thomas, 1982. "Export diversification as a counter to export instability: The example of Columbia," Kiel Working Papers 145, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkwp:145
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    References listed on IDEAS

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    1. de Melo, Jaime & Robinson, Sherman, 1980. "The impact of trade policies on income distribution in a planning model for Colombia," Journal of Policy Modeling, Elsevier, vol. 2(1), pages 81-100, January.
    2. Brundell, Peter & Horn, Henrik & Svedberg, Peter, 1981. "On the Causes of Instability in Export Earnings," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 43(3), pages 301-313, August.
    3. Vincent, David P., 1981. "Multisectoral economic models for developing countries," Kiel Working Papers 117, Kiel Institute for the World Economy (IfW Kiel).
    4. Jaime A. P. de Melo, 1978. "Estimating the Costs of Protection: A General Equilibrium Approach," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 92(2), pages 209-226.
    5. Wayne Thirsk, 1974. "Factor Substitution in Colombian Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 56(1), pages 73-84.
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