ABSTRACT
probably the most important question in this study is whether export fluctuations have any adverse effects, direct or indirect, on the ability of underdeveloped countries to achieve rapid and stable economic growth. Any economic phenomenon which retards the accumulation of capital, distorts its allocation, or otherwise reduces its efficiency strikes at the interests of an underdeveloped country. Sharp fluctuation of export proceeds seems a very proper subject for concern as a possible influence on the rate and efficiency of investment. Unstable export proceeds have in fact, for reasons discussed in Chapter 1, fallen under strong suspicion of damaging prospects for economic growth in underdeveloped countries. A statement by Ragnar Nurkse (1958: p. 143) exemplifies the apprehension of those who consider export fluctuations to be seriously detrimental:
