|Dr. Clovis Freire Junior
Diversification and Structural Economic Dynamics
Bart Verspagen & Bart Los
Diversification is very relevant for poorer developing countries to create jobs and foster economic development. This research presents a framework to identify appropriate sectors and products for diversification, based on a country’s productive structure and changes in global demand. It also proposes a model to study, through computer simulations, the effects of diversification on the structure of trading economies, and strategies that facilitate the diversification of poorer countries and promote economic catch up. This research could assist governments of developing countries in formulating strategies that will identify new products for diversification, contribute to increasing productive capacity, and thereby stimulate development.