From raw material dependency to stability: The role of economic diversification
Larysa Sergiienko 1 * , Kateryna Poliak 2 , Yanislava Nyzhnychenko 3 , Nina Petrukha 4 , Iurii Murzin 5
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1 Zhytomyr Polytechnic State University, UKRAINE2 Rivne State Humanitarian University, UKRAINE3 Odesa National Economic University, UKRAINE4 Kyiv National University of Construction and Architecture, UKRAINE5 Interregional Academy of Personnel Management, UKRAINE* Corresponding Author

Abstract

Economic diversification is a crucial response to the risks associated with resource dependence under conditions of global market volatility, geopolitical instability, and financial uncertainty. The study aims to identify the determinants of economic resilience and analyze diversification mechanisms in resource-dependent economies. The empirical analysis is based on panel regressions and descriptive indicators. The findings demonstrate that diversification based solely on expanding production sectors is insufficient without institutional quality, economic complexity, and digital governance. Evidence from Chile and Kazakhstan confirms the positive role of institutional reforms in structural modernization, while Saudi Arabia and Nigeria remain vulnerable due to persistent rentier economic structures. Integration into global value chains provides opportunities for technological development but also increases exposure to external risks. Investments in green energy and digital innovation are identified as key drivers of long-term sustainability. The study offers practical recommendations for designing national diversification strategies focused on resilience, competitiveness, and socio-economic stability.

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This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Article Type: Research Article

EUR J SUSTAIN DEV RES, Volume 11, Issue 1, 2027, Article No: em0442

https://doi.org/10.29333/ejosdr/19628

Publication date: 01 Jan 2027

Online publication date: 16 Oct 2026

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