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Commodity Prices and Development

Roman Grynberg and Samantha Newton

Abstract

More than fifty developing countries depend on three or fewer commodities for more than half of their exports. In fact, reliance on only a single commodity for a large share of export earnings is quite common in these countries, exposing them to the risk of export earnings instability as a result of price shocks and, perhaps even more significantly, falling purchasing power of exports over the long run in the face of the declining real price of the commodity in question. The problems faced by commodity-dependent developing countries are formidable. Although diversification is the most appropri ... More

Keywords: commodity dependent, developing countries, export earnings, secular decline, diversification, price shocks, real price

Bibliographic Information

Print publication date: 2007 Print ISBN-13: 9780199234707
Published to Oxford Scholarship Online: January 2008 DOI:10.1093/acprof:oso/9780199234707.001.0001

Authors

Affiliations are at time of print publication.

Roman Grynberg, editor
Manager, Economic Governance programme, Pacific Islands Forum

Samantha Newton, editor
Consultant, Economic Affairs Division, Commonwealth Secretariat