Which theory states that it is easy for a LDC to move into middle-income status when commodity prices are rising, but difficult for LDCs to become MDCs if commodity prices fall?

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Development traps theory suggests that while it's easier for less developed countries (LDCs) to achieve middle-income status during periods of high commodity prices, transitioning to more developed country (MDC) status becomes challenging if commodity prices decline. This is because reliance on commodity exports can lead to economic vulnerabilities and hinder diversification and industrialization, which are crucial for becoming an MDC.

Which Theory States That It Is Easy for a LDC