Fluctuations in Export Earnings and Economic Patterns of Asian Countries

A new look at the benefits of diversification: lessons from Central America

“…As the ratio of economic openness (EXPGDP) increases by 1% , the instability index in Model 3 increases the instability variable by 0.005, or nearly 24% from the mean. This runs counter to previous literature ® nding that larger-sized, more open, economies should experience fewer earnings¯uctuations (Brundell et al, 1968;Massell, 1970;Naya, 1973). However, the fact that instability increases with size follows the theoretical framework that higher returns necessitate higher risk; since many of the export products covary positively, higher levels of instability could be expected at higher export levels.…”

Export Growth, Instability and Shortfall: The Impact on Economic Performance in Africa

“…On the other hand, with export diversification, instability in one or two commodities would not necessarily have as large an impact (Naya 1973). Also, with high export concentration, the instability in one commodity could destabilize total earnings.…”

Export instability, imports and investment in developing countries

“…The preference here is to regress the variables expressed in logarithmic form against a constant term and time on the grounds that, as argued by Massell [1970] and Naya [1973], governments tend to operate on the basis of growth rates rather than absolute changes. DATA AND COUNTRY SAMPLE Following customary practice in instability studies, annual data are used.…”