ABSTRACT
The debate of the 1950s and 1960s over primary exports as an engine of growth raised several questions about primary exports: (1) Will world demand for primary products be sufficient to propel growth in exporting countries? (2) Will adverse terms of trade siphon potential gains from LDC exporters to industrial country importers? (3) Can rapidly growing primary export industries transmit growth to the rest of the economy? The answer to all these questions is that it depends, on the product, the country, and the time period. Under some circumstances the case for primary-export-Ied growth is strong, and the literature has failed to establish a presumption against the use of primary exports to help stimulate development.
