Financial stabilization systems, economic growth of developing countries and EU’s STABEX

Aiello, Francesco (2002): Financial stabilization systems, economic growth of developing countries and EU’s STABEX. Published in: Journal of Agriculture and Environment for International Development , Vol. 1/2, No. 96 (2002): pp. 23-51.

Abstract

Understanding the impact of instability of export receipts on the economic growth of developing countries has been an important area of research in development economics for a long time. A substantial body of literature has documented a wide range of empirical regularities according to which export earnings instability (EEI) penalizes LDCs’ economic performance. According to this view, EEI alters the path of economic progress by increasing the uncertainty of financial resources needed to purchase capital goods1. This, in turn, reduces the overall level of efficiency of a country because the formation of capital is distorted by bad investments planning (Commission of the EC 1981, 1997)

• Item Type: MPRA Paper
• Language: English
• Keywords: Export Earnings Instability. Compensatory Financing. Economic Growth
• Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O11 - Macroeconomic Analyses of Economic Development; F - International Economics > F1 - Trade > F13 - Trade Policy ; International Trade Organizations; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O47 - Empirical Studies of Economic Growth ; Aggregate Productivity ; Cross-Country Output Convergence

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