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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Year of publication:	2012
Authors:	Haddad, Mona ; Lim, Jamus Jerome ; Pancaro, Cosimo ; Saborowski, Christian
Publisher:	Frankfurt a. M. : European Central Bank (ECB)
Subject:	Internationale Wirtschaft \| Exportdiversifizierung \| Wirtschaftswachstum \| Volatilität \| Welt \| Export diversification \| growth volatility \| trade openness

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Series:	ECB Working Paper ; 1491
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	752182544 [GVK] hdl:10419/153924 [Handle] RePEc:ecb:ecbwps:20121491 [RePEc]
Classification:	F15 - Economic Integration ; F43 - Economic Growth of Open Economies ; O24 - Trade Policy; Factor Movement Policy; Foreign Exchange Policy
Source:	EconStor

Persistent link: https://www.econbiz.de/10011605536