Walkenhorst, PeterBrenton, PaulNewfarmer, Richard2017-08-172017-08-172009https://hdl.handle.net/10986/27930While diversification of exports is often a desirable trade objective, it is far from clear how best to tap into new opportunities. This paper discusses the range of avenues of diversification, including (i) expanding the range of markets into which existing products are sold (geographic diversification); (ii) upgrading the value of existing products, including agricultural exports (quality diversification); and (iii) taking advantage of opportunities to expand non-merchandise exports (services diversification), in addition to introducing entirely new export products. All offer opportunities for cost?effective positive policies relating to the incentive regime, backbone services, and export support institutions.en-USCC BY 3.0 IGOACCESS TO INFORMATIONADVERSE EFFECTAGRICULTUREAVERAGE PRICEBARRIERBARRIER TO ENTRYBARRIERS TO COMPETITIONBARRIERS TO ENTRYBILATERAL TRADEBINDING CONSTRAINTSBRANDBUSINESS CLIMATEBUSINESS ENVIRONMENTCHLORINECLIMATE CHANGECOMMODITIESCOMMUNICATION TECHNOLOGIESCOMPARATIVE ADVANTAGECOMPETITIVENESSCOMPREHENSIVE STRATEGYCONSUMERSCORPORATE TAXESCOST SAVINGSCRITICAL MASSCUSTOMSDEVELOPED COUNTRIESDEVELOPING COUNTRIESDEVELOPING COUNTRYDEVELOPING COUNTRY MARKETSDEVELOPING ECONOMIESDEVELOPMENT ECONOMICSDEVELOPMENT STRATEGIESDISTRIBUTION SERVICESDOMESTIC ECONOMYDOMESTIC MARKETDOMESTIC REGULATIONECONOMIC ANALYSISECONOMIC CONSTRAINTSECONOMIC DEVELOPMENTECONOMIC GROWTHECONOMIC REFORMECONOMIES OF SCALEELASTICITIESEMERGING ECONOMIESEMPIRICAL STUDIESENVIRONMENTALENVIRONMENTAL BENEFITSEXCHANGE RATESEXPORT DIVERSIFICATIONEXPORT GROWTHEXPORT MARKETEXPORT MARKETSEXPORT PERFORMANCEEXPORT PRICESEXPORT PROCESSINGEXPORT PROCESSING ZONESEXPORT PRODUCTSEXPORT PROMOTIONEXPORT PROMOTION AGENCIESEXPORT PROMOTION AGENCYEXPORT SECTOREXPORT STRUCTUREEXPORT SUPPORTEXPORT TAXEXPORTSFACTORS OF PRODUCTIONFAIRFAIR TRADEFINANCIAL SERVICESFINANCIAL SYSTEMFINISHED PRODUCTFISCAL POLICIESFIXED COSTSFOREIGN DIRECT INVESTMENTFOREIGN EXCHANGEGDPGDP PER CAPITAGEOGRAPHIC DIVERSIFICATIONGLOBAL ECONOMYGREENHOUSE GASESGROSS DOMESTIC PRODUCTGROWTH IN TRADEIMPORT PRICEIMPORTSINCOMEINCOME GROUPSINCOME LEVELSINCREASING RETURNSINCREASING RETURNS TO SCALEINEQUALITYINFORMATION TECHNOLOGYINTERNATIONAL COMPETITIVENESSINTERNATIONAL ECONOMICSINTERNATIONAL ECONOMYINTERNATIONAL INVESTORSINTERNATIONAL MARKETINTERNATIONAL MARKETSINTERNATIONAL TRADEINTERNATIONAL TRADE STATISTICSINVENTORYINVESTMENT POLICIESKNOWLEDGE ECONOMYLABOR COSTSLABOR MARKETLOW TARIFFSLOW-INCOME COUNTRIESMACROECONOMIC POLICYMACROECONOMICSMARGINAL REVENUEMARKET ENTRYMARKET EXPANSIONMARKET FAILUREMARKET FAILURESMARKET INFORMATIONMARKET PENETRATIONMARKETINGMERCHANDISEMERCHANDISE TRADENATIONAL DEVELOPMENTNATURAL ENDOWMENTSNATURAL RESOURCENATURAL RESOURCESNEW MARKETNEW MARKETSNEW PRODUCTNEW PRODUCTSOPEN MARKETSOPPORTUNITY COSTOUTPUTOUTSOURCINGPER CAPITA INCOMEPER CAPITA INCOMESPERFECT INFORMATIONPOLICY ENVIRONMENTPOLICY MAKERSPOLITICAL ECONOMYPOLITICAL ECONOMY OF REFORMPOLITICAL STABILITYPORTFOLIOPRICE VOLATILITYPRIVATE INFRASTRUCTUREPRODUCERSPRODUCT DIFFERENTIATIONPRODUCT QUALITYPRODUCTION COSTSPRODUCTIVITYPUBLIC POLICYQUALITY STANDARDSRAPID ECONOMIC GROWTHRAPID GROWTHREAL EXCHANGE RATESREGIONAL TRADEREGIONAL TRADE AGREEMENTSREGULATORY FRAMEWORKSALESAVINGSSERVICES MARKETSSMALL COUNTRIESSMALL ECONOMYSOCIAL CAPITALSPREADSUPPLIERSUPPLIERSTARIFF PROTECTIONTECHNOLOGICAL CHANGETELECOMMUNICATIONSTERMS OF TRADETHIRD MARKETSTOURISMTOURISM DEVELOPMENTTRADE BARRIERSTRADE DATATRADE IN SERVICESTRADE INTEGRATIONTRADE LIBERALIZATIONTRADE MISSIONSTRADE NEGOTIATIONSTRADE OPENNESSTRADE PERFORMANCETRADE POLICYTRADE PREFERENCESTRADE PROMOTIONTRADE REGIMETRADE RELATIONSHIPSTRANSACTION COSTSVARIABLE COSTSWEALTHWORLD TRADEWORLD TRADE ORGANIZATIONWTOWorking PaperWorld Bank10.1596/27930