Geographic and Industrial Diversification of Developing Country Firms*

ABSTRACT This paper examines the impact of the industrial and geographical diversification activities of developing country firms on their performance, and draws attention to the unique attributes of these firms and of the circumstances under which their diversification activities take place. The empirical analysis is based on data from 345 developing country firms. The findings suggest significant and positive association between industrial and geographic diversification and performance, and considerable variation of these relationships across developing regions and diversification strategies.