Export Instability and the External Balance in Developing Countries /

Uncertainty about the export earnings accruing to a country (sometimes referred to as export instability) is an important source of macroeconomic uncertainty in many developing countries. Theory predicts that countries should react to increases in this form of uncertainty by increasing their level o...

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Bibliographic Details
Main Author: Ghosh, Atish
Other Authors: Ostry, Jonathan
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 1994.
Series:IMF Working Papers; Working Paper ; No. 1994/008
Online Access:Full text available on IMF
Description
Summary:Uncertainty about the export earnings accruing to a country (sometimes referred to as export instability) is an important source of macroeconomic uncertainty in many developing countries. Theory predicts that countries should react to increases in this form of uncertainty by increasing their level of savings. The resulting asset accumulations would then act as the country's insurance against the greater riskiness in its income stream. The paper tests this implication for a large sample of developing countries. In general, the results suggest that developing countries have indeed responded to increases in export instability by building up precautionary savings balances.
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Physical Description:1 online resource (30 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Access:Electronic access restricted to authorized BRAC University faculty, staff and students