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Economic diversity

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Variation of economic activities within a country or region

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Economic diversity oreconomic diversification refers to variations in the economic status or the use of a broad range of economic activities in a region or country.^[1] Diversification is used as a strategy to encourage positiveeconomic growth and development.^[2] Research shows that more diversified economies are associated with higher levels ofgross domestic product.^[3]

Diversification types

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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.
Connected diversification is based on an economical mechanism for expanding the available potential. For business development it means low risks and good margin.
Combined diversification – more frequently both methods are used together.^[2]