Haddad, Mona Lim, Jamus Jerome Pancaro, Cosimo Saborowski, Christian
Year of Publication:
ECB Working Paper 1491
This paper addresses the mechanisms by which trade openness affects growth volatility. Using a diverse set of export concentration measures, we present strong evidence pointing to an important role for export diversification in conditioning the effect of trade openness on growth volatility. Indeed, the effect of openness on volatility is shown to be negative for a significant proportion of countries with relatively diversified export baskets.