Adjustment to higher oil prices in oil-importing developing countries

Journal Article · · J. Energy Dev.; (United States)

OSTI ID:5035799

Dunkerley, J; Steinfeld, A

The adjustments made by the oil-importing developing countries to the oil price increases of 1973 to 1974 are analyzed to see if the lessons learned can be applied to the latest price rises. The short-term effects of deteriorating trade balances and inflation, unless other imports are reduced, require internal adjustments to control and stimulate the economy and long-term adjustments to control the transfer of resources. Focusing on the short-run adjustments, the trade deficits resulted in increased exports and foreign debt, which were handled without major disruptions in selected countries and with increased borrowing by others. Factors which minimize the damage of retarded economic growth are the facts that oil imports to developing countries are small relative to output and foreign exchange reserves are high. The problem of financing current deficits will require close international cooperation and open markets. 5 references, 6 tables. (DCK)

• Research Organization: Resources for the Future, Inc., Washington, DC
• OSTI ID: 5035799
• Journal Information: J. Energy Dev.; (United States), Journal Name: J. Energy Dev.; (United States) Vol. 5:2; ISSN JENDD
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
020700 -- Petroleum-- Economics
Industrial
& Business Aspects
29 ENERGY PLANNING, POLICY, AND ECONOMY
294002* -- Energy Planning & Policy-- Petroleum
DEVELOPING COUNTRIES
ECONOMIC IMPACT
ENERGY SOURCES
FINANCING
FOSSIL FUELS
FUELS
MARKET
OIL-IMPORTING COUNTRIES
PETROLEUM
PRICES
TRADE