Work

Commodity Price Volatility, Vulnerability and Development

Year: 2002

Type: article

Abstract: This article examines the meaning and consequences of the developing countries’ vulnerability to the volatility of commodity prices. It first considers how to define and measure a country’s shocks and exposure arising from commodity price volatility in order to identify structural as distinct from policy vulnerability. The main channels through which price vulnerability influences economic growth are then presented. Finally, the policy implications for development aid, its allocation and design, are outlined. It is found that, while structural vulnerability is bad for growth, a policy of openness contributes to resilience. With the right rules, aid could play an important growth‐enhancing and poverty‐reducing role if allocated at least partly on the basis of vulnerability.

Source: Development Policy Review

DOI: 10.1111/1467-7679.00155

Authors: Jean‐Louis Combes, Patrick Guillaumont

Institutions: Centre National de la Recherche Scientifique, Centre d'Études et de Recherches sur le Développement International, Université de Clermont I

Language: English

Topic: Market Dynamics and Volatility

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: green

OpenAlex ID: W2157138458

FWCI: 4.882

Cites: 26

Cited by: 86

Related to: 10