- Research Article
- 10.1080/00358533.2026.2669265
Intra-regional trade and export diversification in small states: panel evidence from CARICOM
- May 17, 2026
- The Round Table
- Elton Bollers
ABSTRACT This study examines whether intra-regional trade promotes export diversification among CARICOM small states. Using panel data for 2005–2023, export concentration is measured through the Herfindahl–Hirschman, Theil, and Gini indices and estimated using fixed-effects panel models, with system GMM employed as a robustness check. The results reveal a statistically significant positive relationship between intra-regional trade and export concentration, indicating that deeper regional integration reinforces specialisation rather than diversification. These findings challenge conventional expectations of integration-led diversification and highlight structural constraints facing small economies. The results suggest that regional trade must be complemented by targeted industrial and capability-building policies to broaden export bases and strengthen economic resilience.
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