Economic diversity

Economic diversity or economic diversification refers to variations in the economic status or the use of a broad range of economic activities in a region or country. Diversification is used as a strategy to encourage positive economic growth and development. Research shows that more diversified economies are associated with higher levels of gross domestic product.

Economic Diversification types

 * 1) Non-connected diversification – creating a new area. The process is slow, because it is needed to create a whole infrastructure, but the profit would be higher.
 * 2) Connected diversification is based on an economical mechanism for expanding the available potential. For business development it means low risks and good margin.
 * 3) Combined diversification – more frequently both methods are used together.

Diversification examples in countries
Good examples of national economy diversification are Chile, Malaysia and Brazil.