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Foreign Exchange-constrained Developing Economies

In: Why Developing Countries Fail to Develop

Author

Listed:
  • Purushottam Narayan Mathur

    (University College of Wales)

Abstract

In foreign exchange-constrained developing economies, imported goods enter into the production of almost every commodity, as raw materials or intermediate goods. They may not be entering as direct inputs but may be the inputs of some input entering into the production of that commodity. In such countries, the economy is so integrated with the international economy that without any imports it may be not possible to produce anything. Imports also enter directly or indirectly into the production of the essential wage goods. Thus to employ labour also implies the use of certain amount of foreign exchange. The availability of foreign exchange thus vitally affects every aspect of the economy.

Suggested Citation

  • Purushottam Narayan Mathur, 1991. "Foreign Exchange-constrained Developing Economies," Palgrave Macmillan Books, in: Why Developing Countries Fail to Develop, chapter 17, pages 258-270, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-21343-6_18
    DOI: 10.1007/978-1-349-21343-6_18
    as

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