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The Developing Countries’ Gain from Export Prices Indexation: a Crude Model

In: Economic Growth and Resources

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  • J. Bénard

    (University of Paris)

Abstract

It is possible, with the help of a very aggregated model, to study some of the economic aspects of price indexation of primary products exports from developing countries with respect to prices of their imports from industrialised countries.’ This model is crude in the sense that it is extremely aggregated and ignores such important phenomena as oligopolistic international trade and international monetary flows. The model deals with an international trade that is restricted to two goods and two sets of countries: (i) the manufactured good produced exclusively by the set of all industrialised countries belonging to the market economy, and (ii) the non-oil primary product supplied exclusively by the set of all non-oil producing developing countries but competing, on the industrialised countries’ market, with a substitute which is produced by industrialised economies and is therefore considered a manufactured good.

Suggested Citation

  • J. Bénard, 1979. "The Developing Countries’ Gain from Export Prices Indexation: a Crude Model," International Economic Association Series, in: Irma Adelman (ed.), Economic Growth and Resources, chapter 13, pages 171-188, Palgrave Macmillan.
    • Handle: RePEc:pal:intecp:978-1-349-16229-1_13
    DOI: 10.1007/978-1-349-16229-1_13
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