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A Review of the External Positions of the Oil‐Importing Developing Countries and their Relationship to the World Oil Market
Author(s) -
BOUGHTON JAMES M.
Publication year - 1984
Publication title -
natural resources forum
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.646
H-Index - 49
eISSN - 1477-8947
pISSN - 0165-0203
DOI - 10.1111/j.1477-8947.1984.tb00468.x
Subject(s) - developing country , oil price , economics , shock (circulatory) , business , international economics , economic policy , monetary economics , economic growth , medicine
Many oil‐importing developing countries faced greater difficulties coping with the second oil shock (1979–80) than with the first (1973–74). The recent decline in oil prices has offset only a small part of the adverse effect of the earlier increases, and a number of these countries continue to face severe problems in servicing their external debt. This paper explores the reasons for these difficulties, which are associated in part with the higher levels of real interest rates in recent years and with the slowdown in economic activity in industrial countries. Estimates are provided of the effects of changing oil prices on the net real cost of oil imports in developing countries. The paper concludes with an assessment of the medium‐term prospects for the financing of external deficits.