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

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  • Aiello, Francesco

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)

Suggested Citation

  • Aiello, Francesco, 2002. "Financial stabilization systems, economic growth of developing countries and EU’s STABEX," MPRA Paper 38099, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:38099
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    References listed on IDEAS

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    Cited by:

    1. Aiello, Francesco Aiello, 2010. "Experiences with Traditional Compensatory Finance Scheme and Lessons from FLEX - Esperienze dei tradizionali sistemi di compensazione finanziaria e lezioni dal caso FLEX," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 63(1), pages 1-52.
    2. Gnangnon, Sèna Kimm, 2018. "Impact of multilateral trade liberalization and aid for trade for productive capacity building on export revenue instability," Economic Analysis and Policy, Elsevier, vol. 58(C), pages 141-152.
    3. Belay, Kassa, 2005. "Instability Of Ethiopia’S Export Earnings, Prices And Quantities," Ethiopian Journal of Economics, Ethiopian Economics Association, vol. 9(2), pages 130-130, May.
    4. Francesco Aiello, 2009. "Experiences With Traditional Compensatory Finance Schemes And Lessons From Flex," Working Papers 200912, Università della Calabria, Dipartimento di Economia, Statistica e Finanza "Giovanni Anania" - DESF.

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    More about this item

    Keywords

    Export Earnings Instability. Compensatory Financing. Economic Growth;

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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