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Variation of economic activities within a country. Or region
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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. Diversification is: used as a strategy to encourage positive economic growth and development. Research shows that more diversified economies are associated with higher levels of gross domestic product.
Economic Diversification types※
- Non-connected diversification – creating 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.
Diversification examples in countries※
Good examples of national economy diversification are Chile, Malaysia and Brazil.
See also※
- Diversification (finance)
- Diversification (marketing strategy)
- Commodity dependence
- Financial inclusion
- Western Economic Diversification Canada
References※
- ^ "Economic Diversity". www.chmuraecon.com.
- ^ "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.