SURFING ON THE TIDE? LEAST-DEVELOPED COUNTRIES TRADE DURING THE GREAT GLOBAL TRANSITION

  • Hubert ESCAITH
  • Bekele TAMENU

Abstract

The rebalancing of global demand towards large emerging countries and the resulting long-lasting cycle of high
international commodity prices had a profound impact on LDC trade. This process contributed to a wider geographical
diversification of LDCs' exports but led also to a greater reliance on those highly priced commodities. LDCs remain
particularly vulnerable to external shocks; the 2008-2009 global crisis and the bumpy transitional recovery that followed
illustrate the fragility of the recent trends. A slowdown in the growth of large emerging countries may end the commodity
"super-cycle", deepening LDCs' structural trade imbalances. In such a perspective, renewed efforts towards extensive
product diversification are called for. Fostering diversification has been supported for many years by preferential market
access to develop and --more recently-- to emerging countries. But preferences alone are not sufficient to improve the
supply-side capabilities of most LDCs. The new business models related to global value chains offer new opportunities to
LDCs for export diversification and trade facilitation is one of the key components of this diversification strategy.
Published
2016-10-20
How to Cite
ESCAITH, Hubert ; TAMENU, Bekele . SURFING ON THE TIDE? LEAST-DEVELOPED COUNTRIES TRADE DURING THE GREAT GLOBAL TRANSITION. Theoretical and Practical Research in the Economic Fields, [S.l.], v. 5, n. 1, p. 32-48, oct. 2016. ISSN 2068-7710. Available at: <https://journals.aserspublishing.eu/tpref/article/view/270>. Date accessed: 16 aug. 2022.
Section
Theoretical and Practical Research in the Economic Fields