The paper deals with the economic growth of the open and small developing countries which signed the Lome Convention (henceforth ACPs). Results showing that earnings instability damages their economic performance can be used to support the EUpolicy of guaranteeing financial aid to those...

This paper describes some policy instruments set up by the IMF and the European Union in order to provide financial assistance to developing countries whose economies are affected by exogenous shocks from exports side. After briefly reviewing the IMF's CFF and the EU's STABEX, the paper presents...