Adjustment to external shocks in developing economies

Balassa, Bela

1981

B1718
338.98

0-8213-9334-0

This paper analyzes adjustments to external shocks, in the form of changes in the terms of trade and the slowdown in foreign export demand, in twenty-eigth developing economies, classified according to the character of external shocks, the level of industrial development, and the policies applied. It is shown that newly industrializing economies responded to adverse external shocks through domestic adjustment policies in the form of export promotion, import substitution and a slowdown in the rate of economic growth, whereas less developed economies placed reliance largely on foreign borrowing.

DESARROLLO ECONOMICO; DESARROLLO INDUSTRIAL; COMERCIO EXTERIOR; PAISES EN DESARROLLO;