entry for new firms. This leads to less sectoral diversification: fewer sectors are operated but more resources are … industrial diversification …

to the global economy. At the same time, it has been firmly established that development involves massive diversification … of economic activities, including exports. Accordingly, there is a complex interplay between diversification and … specialization in the development process. For economic policy formulation, the issue is how much weight to give to diversification …

covariances). We then use this framework to run counterfactuals changing the degree of destination market diversification …, we find that the effect of increased destination market diversification is quantitatively important in reducing aggregate …