What is the concept of economic diversification?

Economics World Bank Questions



57 Short 80 Medium 80 Long Answer Questions Question Index

What is the concept of economic diversification?

The concept of economic diversification refers to the process of expanding and varying a country's economy by developing new industries and sectors, reducing dependence on a single industry or sector. It involves promoting the growth of different economic activities, such as agriculture, manufacturing, services, and technology, to create a more balanced and resilient economy. Economic diversification aims to reduce the risks associated with relying heavily on a single industry, such as fluctuations in commodity prices or market demand, and to foster long-term sustainable development and economic stability.