Export Diversification of the European Union and BRICS Countries

Export diversification theory came to the fore in the second half of the 20th century as opposed to classical and neoclassical theories of foreign trade. It defend the positive impact of trade diversification on the economic performance of a country. This paper will answer the question how much big economies diversify their exports in the case of product groups and export destinations. The paper uses five different indices describing various features of product and territorial export diversification. The analysis shows that the EU have reached long-term highest export diversification for both the product and the territorial diversification. The BRICS countries have increased their export position in the world economy through the internal and external margin, but from the perspective of alternative indicators, they show very different development of product and territorial diversification.