Export diversification as a contributor to economic growth
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School of Business |
Bachelor's thesis
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Authors
Date
2019
Department
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Mcode
Degree programme
Taloustiede
Language
en
Pages
19+5
Series
Abstract
Export diversification and its benefits for economic growth have been increasingly studied and the results of these studies give reasonably unanimous results. Still many of countries fail to attain the benefits of the phenomenon and cling on their traditional products. In this thesis we will explore the reasoning behind the struggles of implementing the idea of export diversification in addition to proving that a positive relationship between export diversification and economic growth truly exists. The results of the literary review prove that a positive relationship occurs, and that it is significant. Not much opposing results can be found and there are various studies confirming the fact. The effect is found to be not only direct to economic growth, but also indirect through investment. In addition, it is revealed that the effect of export diversification on economic growth is nonlinear, which reinforces the initial hypothesis about developing countries benefiting more from export diversification. Furthermore, it is apparent from the study that the process of export diversification is complicated. Since every country has its unique traits and traditions, it is hard to identify the ways to implement the export diversification process. Nevertheless, the challenges the countries face during the transformation process are similar. They vary from overall uncertainty to political and social structures, and the key to eliminating them drives from the actions of the government. Since it is still difficult to detect what practical actions are in fact expected from the government, it is challenging for countries to start the structural transformation. Some recommendations of strategies for export diversification were identified in this study, but there is still room for expanding in that field. For further studies this thesis recommends researching the practical ways to implement export diversification on a country level.Description
Thesis advisor
Murto, PauliKeywords
export diversification, export structure, structural transformation, developing countries
Other note
Tutkielman tiivistelmätiedoissa näkyvä hyväksymisvuosi on 2020.
The year of approval showing in the abstract of the thesis is 2020.
The year of approval showing in the abstract of the thesis is 2020.