Primary-Product Price Instability and Export Instability in LDCs

Graham Bird

Chapter 3 in The International Monetary System and the Less Developed Countries, 1982, pp 25-62 from Palgrave Macmillan

Abstract: Abstract It is often suggested that one of the main economic problems with which LDCs have to cope is instability in their export earnings. Export instability is felt to constitute a problem since it can affect a country’s domestic income, consumption, savings, investment, tax revenues, balance of payments, and, perhaps most significantly from the point of view of developing countries, capacity to import. Since imports are largely financed from export receipts, an export shortfall will have a direct impact on an LDCs ability to finance imports. Where imports are of a developmental nature, such as capital goods and fertilisers, and are not domestically substitutable, a shortfall in export earnings will tend to exert an adverse influence on development and growth. To the extent that export instability is unpredictable, at least to any precise degree, the uncertainties generated by it will impede efficient development planning.

Keywords: Price Elasticity; Demand Curve; Supply Curve; Export Earning; Export Sector (search for similar items in EconPapers)
Date: 1982
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-16903-0_3

Ordering information: This item can be ordered from
http://www.palgrave.com/9781349169030

DOI: 10.1007/978-1-349-16903-0_3

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().