The DIVE Tool
The DIVE tool
A tool for supporting exports diversification strategies.
Quick description
UNIDO has developed the new tool DIVE (Diversifying Industries and Value Chains for Exports) to help decisionmakers more effectively navigate through the set of possible diversification options. The tool can be used to identify different types of products within a country’s potential diversification space. It is a tool that can be applied to almost all world countries. The origin of the tool is grounded on a recent, empirical literature supporting the evidence that new developed products depend only on the capabilities available in the country that a significant number of countries´ new products entering their export baskets are unrelated to their initial specialization pattern (see also our recent IAP article). Unrelated specialization is more widespread than commonly believed.
Methodology
Building upon the consolidated products space approach, the novel scientific evidence is used to produce a policy tool. This is the foundation of the new UNIDO DIVE tool. The methodology is based on the idea that it is important for diversification to identify and target products that can be exported competitively, independently of a country’s initial capabilities (low path-dependence products), and products based on their pre-existing capabilities (high path-dependence products). Read more here.
Studies
The policy tool is suitable to conduct country studies through internationally-recognized trade data to advice industrial policies. If more detailed data are available, it can also be used to produce reports covering groups of countries and regional studies in specific countries.
