Title: Commodity price stabilization and the developing countries
Abstract: A two-state empirical analysis of commodity price stabilization conducted within a simple market model from the standpoint of developing countries and in terms of specific objectives provides data that allows definition of criteria for determining the primary commodities whose international price stabilization would benefit most developing countries as producers or consumers. Since the pure welfare effects of price stabilization are always positive for both producers and consumers, the income effect of price stabilization becomes the critical criterion for determining, at first approximation, in which commodities developing countries would gain most from price stability. The analysis suggests that in cocoa, coffee, wool, and jute developing countries as a group would gain in terms of greater export revenue and in wheat they would gain in terms of lower import expenditure. International price stabilization in minerals and metals is not likely to benefit developing countries in terms of income. Statistical data are included. Numerous references.
Publication Year: 1978
Publication Date: 1978-03-31
Language: en
Type: article
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Cited By Count: 3
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