Commodity Dependence and Human Development

This paper explores the relationship between commodity dependence and human development measured by the human development index (HDI). Commodity dependence negatively affects human development through several channels, including the negative secular terms of trade affecting commodity‐dependent devel...

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Bibliographic Details
Published in:African development review 2017-02, Vol.29 (S1), p.27-41
Main Authors: Nkurunziza, Janvier D., Tsowou, Komi, Cazzaniga, Sofia
Format: Article
Language:English
Subjects:
Commodities
Commodity markets
Currency instability
Developing countries
Development economics
Economic development
Economic growth
Economic theory
Exports
Exports and imports
Human development
Indexes
International
LDCs
Living conditions
Macroeconomics
Political risk
Quality of life
Secularism
Stability
Studies
Trade
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Summary:This paper explores the relationship between commodity dependence and human development measured by the human development index (HDI). Commodity dependence negatively affects human development through several channels, including the negative secular terms of trade affecting commodity‐dependent developing countries (CDDCs), slow economic growth, high macroeconomic instability, and political instability. The paper finds that although the effect of commodity dependence on human development is negative, on average, this relationship is complex. It changes with the level of dependence as well as the type of commodity a country depends on. This negative effect is strongest in countries where commodities account for more than 60 percent of total merchandise exports.
ISSN:1017-6772
1467-8268
DOI:10.1111/1467-8268.12231