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State of Commodity Dependence 2016

image of State of Commodity Dependence 2016

The 2016 edition of the State of Commodity Dependence contains 135 individual country profiles, each comprising 40 indicators mostly related to the three main dimensions of commodity dependence, namely: export commodity dependence, import commodity dependence and net merchandise and commodity trade. Moreover, as commodity dependence tends to negatively affect poverty alleviation and food security, a set of indicators is included to help monitor trends in this area in developing countries. For each individual country, 2009/10 is used as the reference period. Graphs and diagrams are presented at the beginning of each regional chapter in order to highlight the position of individual countries within their respective regions.

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Introduction

In the State of Commodity Dependence Report, export commodity dependence is defined as the ratio (in percentage) of the value of commodity exports to the value of total merchandise exports. A country is said to belong to the group of Commodity Dependent Developing Countries” (CDDCs) when this percentage exceeds 60 per cent. The 60 per cent threshold was econometrically determined in a study establishing, in a given country, the response of the Human Development Index (HDI) to commodity export dependence. Using a quantile regression of HDI on export commodity dependence (including other controls), the coefficient of export dependence is strongest (higher than the average of -0.2, in absolute value) when HDI is less than 0.6. This cut-off point corresponds to a commodity dependence ratio of 0.6. In addition, when this percentage exceeds the threshold of 80 per cent, developing countries are defined as strongly commodity export dependent.

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