ABSTRACT
in Chapter 1 some plausible reasons for expecting fluctuations in export proceeds to cause sympathetic fluctuations in income, employment, domestic prices, imports, and domestic investment were set out. Employment seemed to be the least likely to be seriously affected for reasons stated there. Moreover, statistical data on employment are unavailable or extremely inaccurate in most underdeveloped countries. Analyses in this chapter will therefore omit direct consideration of employment and concentrate on the other four variables. Where possible, employment and unemployment data have been used in the case studies in Part II. In the present chapter assumptions and conclusions of theories concerning export-induced domestic instability are discussed against the recent historical experience of the less developed countries.
