Developing Nations Face Worsening Trade Imbalance, Struggle to Afford Imports
The article examines how the prices of goods exported by less developed countries compared to the prices of goods they import have changed over time. This is important because it affects how much they need to export to afford their imports. The researchers wanted to see if these price trends are predictable and how much they vary. Understanding these trends is crucial for countries relying on commodity exports to manage their finances and make decisions about what to produce and export. The findings can help countries adjust to changes in commodity prices effectively.