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International Monetary Fund. African Dept.

production constraints and improve the investment cycle. Indeed, policy changes aiming at education and productivity could carry positive impacts on the informal economy, which is half the size of total GDP. Furthermore, although overall export diversification and product exports moved slightly upwards in recent years, production diversification could yield higher growth rates. References Dabla-Norris , Era , Giang Ho , Kalpana Kochhar , Annette Kyobe , and Robert Tchaidze , 2013 , “ Anchoring Growth: The Importance of Productivity

Mr. A. Salehizadeh, Mr. Peter Berezin, and Mr. Elcior Santana
It is typically assumed that countries in the Caribbean suffer from a lack of output and export diversification. Contrary to this popular perception, we find no evidence that output variability is higher in Caribbean countries than in larger, more diversified, developing economies. In addition, we find no evidence that export earnings are more volatile in the Caribbean economies than elsewhere. In fact, export earnings are quite stable in the Caribbean, reflecting the fact the region is rather unique in that most of its export earnings are generated from service exports, which tend to be considerably less volatile than goods exports.