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Rising manufacture exports and terms of trade: the case study of Korea

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  • Prabirjit Sarkar

    (Economics Department, Jadarpur University, Kolkata (Calcutta) 700032, India, prabirjitsarkar@rediffmail.com)

Abstract

This study observed rapidly rising shares of manufactured and electronic goods in Korea’s total exports and a trend decline in Korea’s terms of trade over the period of this study (1967-2001), in accordance with the Prebisch-Singer hypothesis. Contrary to the expectation of Prebisch, the increasing proportion of manufactured and electronic goods in Korea’s exports exerted no favourable influence on the course of Korea’s terms of trade. In fact, this study supports the later extension to the Prebisch-Singer hypothesis, that rather than an emphasis on relations between types of commodities there should be an emphasis on relations between types of countries.

Suggested Citation

  • Prabirjit Sarkar, 2005. "Rising manufacture exports and terms of trade: the case study of Korea," Progress in Development Studies, , vol. 5(2), pages 83-88, April.
    • Handle: RePEc:sae:prodev:v:5:y:2005:i:2:p:83-88
    DOI: 10.1191/1464993405ps103oa
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    References listed on IDEAS

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    1. Prebisch, Raúl, 1950. "The economic development of Latin America and its principal problems," Sede de la CEPAL en Santiago (Estudios e Investigaciones) 29973, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    2. Prabirjit Sarkar, 2001. "The North-South terms of trade debate: a re-examination," Progress in Development Studies, , vol. 1(4), pages 309-327, October.
    3. Perron, Pierre, 1997. "Further evidence on breaking trend functions in macroeconomic variables," Journal of Econometrics, Elsevier, vol. 80(2), pages 355-385, October.
    4. H. W. Singer, 1975. "The Strategy of International Development," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-04228-9.
    5. Sapsford, David & Balasubramanyam, V. N., 1994. "The long-run behavior of the relative price of primary commodities: Statistical evidence and policy implications," World Development, Elsevier, vol. 22(11), pages 1737-1745, November.
    6. Mixon, Franklin G. & Sawyer, W. Charles & Upadhyaya, Kamal P., 2002. "Unit Root Test Popularity among Economists: Sampling the Literature," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 55(1), pages 37-46.
    7. Nelson, Charles R. & Plosser, Charles I., 1982. "Trends and random walks in macroeconmic time series : Some evidence and implications," Journal of Monetary Economics, Elsevier, vol. 10(2), pages 139-162.
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    Cited by:

    1. Shouvik Chakraborty & Prabirjit Sarkar, 2020. "From The Classical Economists To Empiricists: A Review Of The Terms Of Trade Controversy," Journal of Economic Surveys, Wiley Blackwell, vol. 34(5), pages 1111-1133, December.

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