How Countries Can Diversify Their Exports
Government, education, infrastructure, and trade policy are four economic elements that are directly related to more complicated and diversified exports between nations. Chile, the largest copper producer in the world, exports approximately half of its goods and supplies roughly one-third of the world's demand for metal. Beyond the dominance of mining, however, Chile's trade flows are more diverse and complex than they may seem, with sizeable exports of automobiles, pharmaceuticals, and telecom equipment. And the Andean economy is one of those that stands out as a role model for diversification strategies. By looking beyond commodities, the research demonstrates that economy-wide policies, such as governance and education, help foster a variety of exports more than policies that are specifically targeted toward industries. This finding can better direct countries looking to increase their international trade. The analysis of 201 nations and territories goes beyond t...