Economic diversity
Economic diversity or economic diversification refers to variations in the economic status or the use of a broad range of economic activities in a region or country.[1] Diversification is used as a strategy to encourage positive economic growth and development.[2] Research shows that more diversified economies are associated with higher levels of gross domestic product.[3]
Economic Diversification types
- Non-connected diversification – creating a new area. The process is slow, because it is needed to create a whole infrastructure, but the profit would be higher.
- Connected diversification is based on an economical mechanism for expanding the available potential. For business development it means low risks and good margin.
- Combined diversification – more frequently both methods are used together.[2]
Diversification examples in countries
Good examples of national economy diversification are Chile, Malaysia and Brazil.[4]
See also
- Diversification (marketing strategy)
- Commodity dependence
- Financial inclusion
- Western Economic Diversification Canada
References
- ^ "Economic Diversity". www.chmuraecon.com.
- ^ a b "Economic diversification". unfccc.int.
- ^ Freire, Clovis. "Economic Diversification: Explaining the pattern of diversification in the global economy and its implications for fostering diversification in poorer countries" (PDF). UN/DESA.
- ^ "A well diversified economy requires a regional touch". The National. Retrieved 2020-03-29.