Financialisation in the primary commodity dependent developing countries: the case of Chile Online publication date: Mon, 25-Jul-2011
by Daniela Tavasci, Luigi Ventimiglia
International Journal of Management Concepts and Philosophy (IJMCP), Vol. 5, No. 2, 2011
Abstract: Financialisation is here defined with respect to the specific market considered in the present paper, the copper market. The commodity futures market was initially formed to serve the need to hedge risk of price movements of producers and consumers of a real commodity. In the 1990s, because of the deregulation of this market, financial investors, in their continuous search for diversification increasingly invested in futures commodity markets. Price changes in these markets became eventually one of the determinants of the real markets which then became financialised. The object of this paper is to discuss how the financialisation of a primary commodity market influences a commodity dependent developing country such as Chile whose cycle is completely determined by the commodity price movements. The paper concludes stressing on the importance of counter-cyclical policies to reduce the vulnerability of a small open economy to its commodity exports price changes.
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Management Concepts and Philosophy (IJMCP):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email subs@inderscience.com
Our Blog 
Follow us on Twitter 
Visit us on Facebook