This paper addresses the mechanisms by which trade openness affects growth volatility. Using a diverse set of export diversification indicators, it presents strong evidence pointing to an important role for export diversification in reducing the effect of trade openness on growth volatility. The authors also identify positive thresholds for product diversification at which the effect of openness on volatility changes sign. The effect is shown to be...
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2010/02/01
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Documento de trabalho sobre pesquisa de políticas
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WPS5222
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1
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1
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2010/07/01
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Disclosed
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Trade openness reduces growth volatility when countries are well diversified
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Poverty Reduction & Economic Management
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