CARIFORUM and UK EPA Study

A high concentration on a few products in its imports could make a country highly susceptible to international price volatility and/or supply. On the other hand, a low concentration could produce risks when there is volatility in productive capacity at home. However, ceteris paribus, this could be an indicator of the region’s integration into global markets. 13 Low concentration suggests that imports are more diversified suggesting less vulnerability to shocks. This therefore produces different implications, so there is no clear correlation with economic risks ( UNCTAD). The data shows that the level of concentration (Imports) varies among CF countries. Closer examination of the data show that concentration actually increased for some countries over the PoA, while others remained at around the same level. 14 An examination of the Data is done for 2020 to allow for a contemporary comparison of CF countries’ performance on the product concentration index across the region. The countries that had a greater number of product groupings generally exhibited lower levels of product concentration. As can be seen from the Table below, Belize, therefore, reported the lowest level of product concentration among all the CF countries, in 2020, though it was not associated with the greatest number of products within the group. The country with the greatest number of products within the group was the Dominican Republic, followed by Trinidad and Tobago. Countries whose imports were less concentrated over the period, that is between 2008 to 2020, therefore showed a decrease in the product concentration index in 2020 over the level in 2008. Where the change was negative, it was an indication of low concentration and possibly greater

13 A lower concentration index could mean increased integration into global markets. 14 See Country Tables at Appendix VI.

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