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

  1. 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.
  2. Connected diversification is based on an economical mechanism for expanding the available potential. For business development it means low risks and good margin.
  3. 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

References

  1. ^ "Economic Diversity". www.chmuraecon.com.
  2. ^ a b "Economic diversification". unfccc.int.
  3. ^ 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.
  4. ^ "A well diversified economy requires a regional touch". The National. Retrieved 2020-03-29.


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