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Caribbean Diversification and Development
Author(s) -
Mohan Preeya
Publication year - 2016
Publication title -
the world economy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.594
H-Index - 68
eISSN - 1467-9701
pISSN - 0378-5920
DOI - 10.1111/twec.12387
Subject(s) - diversification (marketing strategy) , margin (machine learning) , economics , developing country , economic geography , panel data , international trade , development economics , business , economic growth , econometrics , marketing , machine learning , computer science
Small Island Developing States generally adopt diversification as their primary development strategy, often with little success. Nevertheless, there is no empirical study specifically focusing on the pattern of diversification of these countries in relation to their development. The objective of this paper was to study the export diversification pattern by the intensive (a more equally spread export basket) and extensive (an increase in new export lines) product margin of 21 Caribbean countries in relation to their level of development using panel data. The results show that despite their limited ability to diversify, Caribbean countries, as has been found for other parts of the world, first diversify and subsequently respecialise though at a substantially lower level of income than other countries and that the intensive margin plays a greater role in this process.