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Latent Trade Diversification and Its Relevance for Macroeconomic Stability

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creativeworkseries.issn1564-698X
dc.contributor.authorLederman, Daniel
dc.contributor.authorRojas, Diego
dc.date.accessioned2023-08-28T19:47:48Z
dc.date.available2023-08-28T19:47:48Z
dc.date.issued2019-10-31
dc.description.abstractThis paper examines the economic implications of a novel concept of trade diversification—latent diversification. In contrast to traditional measures, latent diversification accounts for potential movements of factors of production into activities where the country has previous exporting experience, hence presenting an additional margin through which countries can respond to shocks. The paper shows that the gap between traditional measures of diversification and latent diversification is sizeable and that latent diversification is in its own right an important determinant of macroeconomic stability. More diversified latent export baskets are associated with lower terms-of-trade volatility and, in turn, lower GDP per capita volatility, even after controlling for the degree of contemporaneous export diversification and other country characteristics.en
dc.identifier.citationThe World Bank Economic Review
dc.identifier.doi10.1596/40280
dc.identifier.issn0258-6770 (print)
dc.identifier.issn1564-698X (online)
dc.identifier.urihttps://openknowledge.worldbank.org/handle/10986/40280
dc.language.isoen_US
dc.publisherPublished by Oxford University Press on behalf of the World Bank
dc.relation.ispartofseriesWorld Bank Economic Review
dc.rightsCC BY-NC-ND 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by-nc-nd/3.0/igo
dc.subjectTRADE CONCENTRATION
dc.subjectDIVERSIFICATION
dc.subjectEXTENSIVE MARGIN OF EXPORTS
dc.subjectVOLATILITY
dc.titleLatent Trade Diversification and Its Relevance for Macroeconomic Stabilityen
dc.typeJournal Article
dspace.entity.typePublication
okr.associatedcontenthttps://academic.oup.com/wber/article/35/1/58/5610322 Journal website (version of record)
okr.crossref.titleLatent Trade Diversification and Its Relevance for Macroeconomic Stability
okr.date.disclosure2023-08-28
okr.doctypePublications & Research::Journal Article
okr.identifier.doi10.1093/wber/lhz019
okr.identifier.doihttp://dx.doi.org/10.1596/40280
okr.language.supporteden
okr.pagenumber58–91
okr.peerreviewAcademic Peer Review
okr.region.geographicalWorld
okr.topicMacroeconomics and Economic Growth::Economic Growth
okr.topicMacroeconomics and Economic Growth::Economic Development
okr.topicInternational Economics and Trade::Trade and Standards
okr.volume35 (1)
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relation.isAuthorOfPublication.latestForDiscovery2c812f70-403a-5905-88e4-bd90a5f31e96
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relation.isJournalVolumeOfPublication3a13adfa-b971-4f6d-9aaa-21ba96efc218
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