Chapter 5. GLOBALIZATION, COMMODITY PRICES, AND DEVELOPING COUNTRIES
- International Monetary Fund. Research Dept.
- Published Date:
- April 2008
This chapter examines the role of soaring commodity prices in contributing to emerging and developing economies’ growing trade and financial integration into the global economy. It finds that improvements in institutions and policy frameworks help explain why the current commodity price boom is proving more favorable to developing economies than previous booms, bringing rapid growth in exports (especially manufacturing exports), investment (both domestic and foreign), and output. Continued progress in trade and financial integration will require sustained efforts to further strengthen institutions and economic policies in developing countries.