Can Export Market Diversification Mitigate Agricultural Export Volatility? A Trade Network Perspective

Abstract

ABSTRACT Using the social network analysis (SNA) method to calculate the level of agricultural export market diversification in various countries, this study examined the impact of agricultural export market diversification on export volatility from the supply network perspective based on HS6-digit agricultural export data. We identified that the agricultural export market diversification significantly reduces the export volatility. Specifically, the effect of diversifying the export market of processed agricultural products in stabilizing export volatility is greater than that of primary agricultural products. The stabilizing effect of emerging markets and developing countries or regions is more evident than developed countries or regions. Moreover, the export market diversification can stabilize the volatility of agricultural exports through two mechanisms: increasing the international market share and extending the export duration.