Trade openness reduces growth volatility when countries are well diversified

Mona Haddad, Jamus Lim, Cosimo Pancaro and Christian Saborowski

Canadian Journal of Economics/Revue canadienne d'économique, 2013, vol. 46, issue 2, 765-790

Abstract: 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. L'ouverture du commerce réduit la volatilité de la croissance quand les pays sont bien diversifiés. Ce texte examine les mécanismes par lesquels l'ouverture du commerce affecte la volatilité de la croissance. A l'aide de diverses mesures de concentration des exportations, on fait état de résultats robustes tendant à montrer le rôle important de la diversification des exportations dans le conditionnement de l'effet d'ouverture du commerce sur la stabilité de la croissance. On montre que l'ouverture a un effet négatif sur la volatilité de la croissance dans une proportion significative de pays qui ont des paniers d'exportations relativement diversifiés.

Date: 2013
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Citations: View citations in EconPapers (70)

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https://doi.org/10.1111/caje.12031

Related works:
Journal Article: Trade openness reduces growth volatility when countries are well diversified (2013)
Working Paper: Trade openness reduces growth volatility when countries are well diversified (2012)
Working Paper: Trade openness reduces growth volatility when countries are well diversified (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:wly:canjec:v:46:y:2013:i:2:p:765-790

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