Policy recommendations

As discussed in the previous sections, economic diversification requires strategic policies by Asian LLDCs. The implementation of such strategic diversification involves the selective promotion of new economic activities over traditional ones through the use of targeted industrial, infrastructure, trade, investment and private sector development policies. The analysis of empirical evidence, as presented in this report, can be used in the process of identification of strategic direction of diversification. It could serve as a public good that could be made available to the private sector. It reduces the cost of discovery of potential successful new economic activities by informing entrepreneurs of the new products that require productive capacities similar to those already available in the country.

Related Subject(s): Economic and Social Development