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  A model of trade diversification based on the Markowitz model of portfolio analysis
 
 
Title: A model of trade diversification based on the Markowitz model of portfolio analysis
Author: Love, J.
Appeared in: The journal of development studies
Paging: Volume 15 (1979) nr. 2 pages 233-241
Year: 1979-01
Contents: Despite the widespread adoption of trade diversification as a legitimate policy objective by planners in developing countries, there has as yet been little effort to examine systematically the argument that diversification will reduce fluctuations in export earnings. This paper attempts to develop a model, along the lines of the Markowitz model of portfolio analysis, which would allow one to investigate the impact of diversification. The analysis suggests that diversification does not invariably reduce or eliminate export fluctuations and that diversification may involve a cost in terms of lost export earnings.
Publisher: Routledge
Source file: Elektronische Wetenschappelijke Tijdschriften
 
 

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