2 Imb and Wacziag (2003) show that countries diversify over most of their development path. Countries start specializing quite late in the development process, and the turnaround point occurs at a robust level of income per capita (around constant 1985 $10,000). They conclude that increased sectoral specialization applies only to high-income economies. It is important to note that some countries may not broaden their economic base as they develop due to their specific economic conditions (e.g. small states).