Trade openness reduces growth volatility when countries are well diversified

Christian Saborowski, Mona Haddad, Jamus Lim and Cosimo Pancaro

No 1491, Working Paper Series from European Central Bank

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. JEL Classification: F15, F43, O24

Keywords: export diversification; growth volatility; trade openness (search for similar items in EconPapers)
Date: 2012-11
New Economics Papers: this item is included in nep-fdg, nep-int and nep-opm
Note: 1934813
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Citations: View citations in EconPapers (19)

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Related works:
Journal Article: Trade openness reduces growth volatility when countries are well diversified (2013)
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 (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:ecb:ecbwps:20121491

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