Diversification is an important component of the development of any economy. The reason for this is the increase in the country's resilience to external stimuli, which makes progress more gradual, constant and predictable. Thus, the study of the possibilities of diversifying the economy is very...

Asset diversification has long been fundamental to investment risk mitigation. We compute new long-term country-specific indices of diversification potential for equity, sovereign debt, and real estate. Findings for the 1986-2021 study period indicate markedly declining or persistently dampened...

Diversification is an important component of the development of any economy. The reason for this is the increase in the country's resilience to external stimuli, which makes progress more gradual, constant and predictable. Thus, the study of the possibilities of diversifying the economy is very...

We propose a novel measure to investigate firms' product specialisation: product coreness, that captures the centrality of exported products within the firm's export basket. We study product coreness using firm-product level data between 2018 and 2020 for Colombia, Ecuador, and Peru. Three main...

We analyze how trade affects aggregate volatility using a multi-country, multiindustry, and multi-destination framework. We decompose aggregate output growth risk into destination risk, origin risk, and idiosyncratic risk (and their covariances). We then use this framework to run counterfactuals...

There has been renewed emphasis in the recent trade policy debate on the potential positive impact of diversification of the product composition on export expansion. However, the standard trade theory predicts that export success depends on pursuing comparative advantages rather than...

Export diversification, or the breadth of exports of an economy, is increasingly seen as a means of accelerating economic growth, mitigating instability due to price, demand, and exchange rate fluctuations, and stabilizing earnings from exports in the long run. As economies integrate into global...