Export Product Diversification and Fiscal Space Volatility in Developing Countries: Exploring the Economic Growth Volatility Channel

Sena Gnangnon ()
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Sena Gnangnon: World Trade Organization

Economics Bulletin, 2020, vol. 40, issue 3, 1837-1854

Abstract: This paper investigates the effect of export product concentration on fiscal space volatility in developing countries, notably through the economic growth volatility channel. The empirical exercise has relied on a set of 117 developing countries over the period 1980-2014 using the feasible generalized least squares approach. The findings have indicated that export product concentration induces greater volatility of fiscal space, including in countries that experience higher economic growth volatility. Additionally, a further rise in the level of export product concentration amplifies the volatility of fiscal space.

Keywords: Export Product Diversification; Economic Growth Volatility; Fiscal Space Volatility. (search for similar items in EconPapers)
JEL-codes: F4 (search for similar items in EconPapers)
Date: 2020-07-14
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