Longmore, RohanJaupart, PascalCazorla, Marta Riveira2014-05-142014-05-142014-04https://hdl.handle.net/10986/18330This paper contributes to the predominant diversification debate that has been ongoing in Trinidad and Tobago for more than three decades. The paper makes a determination of the key impediments to the country's attempts at diversification. Econometric techniques are applied on panel data to identify the most significant obstacles to economic diversification for a set of 183 countries. The results indicate that openness to foreign direct investment inflows is the most fundamental driver of diversification. The findings are then applied to the specific case of Trinidad and Tobago through a detailed analysis of the links in the trends followed by foreign direct investment and diversification between 1980 and 2011. Greater openness to foreign direct investment and improving the business climate appear to be key policies the twin-island republic could implement further in order to expand the range of activities of its economic structure.en-USCC BY 3.0 IGOACCESS TO CREDITACCESS TO EDUCATIONACCESS TO FINANCEACCESS TO INTERNATIONAL MARKETSACCESS_TO_FINANCEADVANCED TECHNOLOGYADVERSE CONSEQUENCESBANKING SECTORBILATERAL TRADEBINDING CONSTRAINTBINDING CONSTRAINTSBONDBUSINESS ACTIVITIESBUSINESS CLIMATEBUSINESS CONFIDENCEBUSINESS CYCLESBUSINESS DEVELOPMENTBUSINESS ENVIRONMENTCAPITAL ACCUMULATIONCAPITAL INFLOWSCAPITAL INVESTMENTCAPITAL MARKETSCENTRAL BANKCOMMODITIESCOMMODITYCOMMODITY EXPORTCOMMODITY EXPORTSCOMMODITY PRICECOMMON MARKETCOMPARATIVE ADVANTAGECOMPARATIVE ADVANTAGESCOMPETITIVENESSCONSUMER PRICE INDEXCONTRACT REPUDIATIONCORRUPTIONCOUNTRY FIXED EFFECTCOUNTRY FIXED EFFECTSCOUNTRY RISKCREDIBILITYCURRENCYCURRENCY APPRECIATIONCURRENCY DEPRECIATIONCUSTOMS UNIONCUSTOMS UNIONSDEBTDEPENDENT VARIABLEDEREGULATIONDEVELOPMENT BANKDEVELOPMENT CORPORATIONDEVELOPMENT POLICIESDEVELOPMENT POLICYDIVESTMENTDOMESTIC CREDITDOMESTIC FINANCIAL MARKETSDOMESTIC PRICESDOUBLE TAXATIONDUAL ECONOMYDUTCH DISEASEE-BUSINESSE-COMMERCEECONOMETRIC MODELECONOMETRICSECONOMIC ACTIVITIESECONOMIC ACTIVITYECONOMIC COOPERATIONECONOMIC DEVELOPMENTECONOMIC GROWTHECONOMIC OUTLOOKECONOMIC REFORMSECONOMIC SECTORSECONOMIC STATISTICSECONOMIC STRUCTUREECONOMIES OF SCALEEMPLOYMENT OPPORTUNITIESENTERPRISE DEVELOPMENTENTREPRENEURSEXCHANGE RATEEXCHANGE RATE REGIMEEXCHANGE_RATEEXPENDITUREEXPLOITATIONEXPORT BASEEXPORT DIVERSIFICATIONEXPORT LED GROWTHEXPORT SECTOREXPORTEREXPORTERSEXPORTSEXPROPRIATIONEXPROPRIATION RISKEXTERNALITIESFACTORS OF PRODUCTIONFINANCIAL CRISISFINANCIAL DEVELOPMENTFINANCIAL MARKETSFINANCIAL SYSTEMFISCAL POLICYFIXED CAPITALFOREIGN COMPANIESFOREIGN CURRENCIESFOREIGN CURRENCYFOREIGN DIRECT INVESTMENTFOREIGN DIRECT INVESTMENTSFOREIGN INVESTMENTSFOREIGN INVESTORFOREIGN INVESTORSFOREIGN MARKETSFREE TRADEFUNDAMENTAL DETERMINANTSFUTURE GROWTHGDPGDP PER CAPITAGDP_PER_CAPITAGLOBAL DIVERSIFICATIONGOVERNMENT POLICYGOVERNMENT REVENUESGOVERNMENT SUBSIDIESGREATER ACCESSGROSS DOMESTIC PRODUCTGROSS FIXED CAPITAL FORMATIONGROWTH OPPORTUNITIESGROWTH POTENTIALGROWTH RATESHIGH-INCOME COUNTRYHUMAN CAPITALHUMAN RESOURCEHUMAN_CAPITALINCOMEINDUSTRIALIZATIONINFLATIONINSTITUTIONAL CONSTRAINTINSTITUTIONAL REFORMSINSTRUMENTINTERNATIONAL BANKINTERNATIONAL BUSINESSINTERNATIONAL COMPETITIONINTERNATIONAL MARKETSINTERNATIONAL TRADEINVESTINGINVESTMENT INFLOWSINVESTMENT POLICYJUDICIAL SYSTEMLABOR FORCELABOR MARKETLABOR MARKETSLIMITED ACCESSLIQUIDITYLIQUIDITY CONSTRAINTSLOCAL CURRENCYLOCAL INVESTORSMACROECONOMIC RISKMACROECONOMIC VARIABLESMACROECONOMIC VOLATILITYMANUFACTURING INDUSTRIESMARKET REGULATIONSMERCHANTMICRO DATAMIXED ECONOMYMONETARY FUNDMONEY SUPPLYNATIONAL INFRASTRUCTURENATURAL RESOURCENATURAL RESOURCESNEW BUSINESSOIL EXPORTERSOIL PRICEOIL PRODUCING COUNTRIESOUTPUTOVERVALUATIONPER CAPITA INCOMEPOLITICAL RISKPORTFOLIOPOVERTY REDUCTIONPRICE INCREASESPRIVATE INVESTORSPRIVATE SECTOR DEVELOPMENTPRIVATIZATIONPROFITABILITYPROPERTY RIGHTSPROPERTY_RIGHTSPUBLIC POLICIESPUBLIC UTILITIESRATES OF RETURNSREAL EXCHANGE RATEREAL GDPREAL INCOMEREAL_EXCHANGE_RATERECESSIONREGIONAL TRADEREGULATORY AGENCIESRENT SEEKINGRISK OF CONTRACT REPUDIATIONSOCIAL CAPITALSTATE ENTERPRISESSTOCKSTAXTAX INCENTIVESTAX SYSTEMSTAXATIONTOTAL EXPORTTOTAL EXPORTSTRADE LIBERALIZATIONTRADE RESTRICTIONSTRADE SHOCKSTRANSPARENT INSTITUTIONSTREASURYTREATIESUNEMPLOYMENTVALUE ADDEDVOLATILE CAPITALVOLATILITYWAGESWEALTHWORLD DEVELOPMENT INDICATORSWORLD ECONOMY10.1596/1813-9450-6840