The short-run impact of fluctuating primary commodity prices on three developing economies: Colombia, Ivory Coast and Kenya

The short-run impact of fluctuating primary commodity prices on three developing economies: Colombia, Ivory Coast and Kenya

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Article ID: iaor20071298
Country: Netherlands
Volume: 11
Issue: 5
Start Page Number: 405
End Page Number: 416
Publication Date: May 1983
Journal: World Development
Authors: , , ,
Keywords: developing countries
Abstract:

Computable general equilibrium models are used to study the short-run impact of fluctuating primary commodity prices on the economies of Colombia, Ivory Coast and Kenya. The results indicate that these economies are destabilized by primary commodity price fluctuations unless governments act to hold real domestic absorption constant. To achieve this, however, would require foreign exchange reserves in excess of the level normally available to these governments for the purpose of stabilizing domestic economic activity.

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