IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/60502.html
   My bibliography  Save this paper

A History of Economic Theorizing on the Prebisch-Singer Thesis

Author

Listed:
  • Thomas, Ziesemer

Abstract

This paper, in its second part, adds the lacking theoretical underpinnings to the literature on exports and growth. It attempts to demonstrate why most of the theoretical analyses of the terms of trade phenomenon has been inadequate from the development point of view. It then presents in its third part, an open Solow type model in which the arguments of Prebisch and Singer, income and price elasticities of export demand, are indeed the reason for lower growth rates in comparison to those of the closed Solow model. Part IV draws some conclusions with respect to policies and research requirements.

Suggested Citation

  • Thomas, Ziesemer, 1998. "A History of Economic Theorizing on the Prebisch-Singer Thesis," MPRA Paper 60502, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:60502
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/60502/1/MPRA_paper_60502.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Robert M. Solow, 1956. "A Contribution to the Theory of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 70(1), pages 65-94.
    2. Ziesemer, Thomas, 1995. "Growth with imported capital goods, limited export demand and foreign debt," Journal of Macroeconomics, Elsevier, vol. 17(1), pages 31-53.
    3. Athukorala, Premachandra, 1993. "Manufactured exports from developing countries and their terms of trade: A reexamination of the Sarkar-Singer results," World Development, Elsevier, vol. 21(10), pages 1607-1613, October.
    4. Theodore W. Schultz, 1981. "Knowledge Is Power in Agriculture," Challenge, Taylor & Francis Journals, vol. 24(4), pages 4-12, September.
    5. Richard A. Brecher & Ehsan U. Choudhri, 1982. "Immiserizing Investment from Abroad: The Singer-Prebisch Thesis Reconsidered," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 97(1), pages 181-189.
    6. Cuddington, John T & Urzua, Carlos M, 1989. "Trends and Cycles in the Net Barter Terms of Trade: A New Approach," Economic Journal, Royal Economic Society, vol. 99(396), pages 426-442, June.
    7. Taylor, Lance, 1981. "South-north trade and southern growth : Bleak prospects from the structuralist point of view," Journal of International Economics, Elsevier, vol. 11(4), pages 589-602, November.
    8. Griffin, Keith & Gurley, John, 1985. "Radical Analyses of Imperialism, the Third World, and the Transition to Socialism: A Survey Article," Journal of Economic Literature, American Economic Association, vol. 23(3), pages 1089-1143, September.
    9. Molana, Hassan H & Vines, David A, 1989. "North-South Growth and the Terms of Trade: A Model on Kaldorian Line s," Economic Journal, Royal Economic Society, vol. 99(396), pages 443-453, June.
    10. Kurz, Heinz D, 1992. "Adam Smith on Foreign Trade: A Note on the 'Vent-for-Surplus' Argument," Economica, London School of Economics and Political Science, vol. 59(236), pages 475-481, November.
    11. Robert M. Stern & Jonathan Francis & Bruce Schumacher, 1976. "Price Elasticities in International Trade," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-03137-5.
    12. Jeffrey D. Sachs, 1989. "Developing Country Debt and Economic Performance. The International Financial System," NBER Chapters, in: Developing Country Debt and Economic Performance, Volume 1: The International Financial System, pages -12, National Bureau of Economic Research, Inc.
    13. Bacha, Edmar L., 1978. "An interpretation of unequal exchange from Prebisch-Singer to Emmanuel," Journal of Development Economics, Elsevier, vol. 5(4), pages 319-330, December.
    14. Evans, David, 1987. "The long-run determinants of North-South terms of trade and some recent empirical evidence," World Development, Elsevier, vol. 15(5), pages 657-671, May.
    15. Findlay, Ronald, 1980. "The Terms of Trade and Equilibrium Growth in the World Economy," American Economic Review, American Economic Association, vol. 70(3), pages 291-299, June.
    16. Darity, William A, Jr, 1990. "The Fundamental Determinants of the Terms of Trade Reconsidered: Long-run and Long-period Equilibrium," American Economic Review, American Economic Association, vol. 80(4), pages 816-827, September.
    17. Barros, Alexandre Rands, 1992. "On the Deterioration of the Terms of Trade for Primary Commodities," Brazilian Review of Econometrics, Sociedade Brasileira de Econometria - SBE, vol. 12(1), April.
    18. Anthony Philip Thirlwall, 1983. "Foreign trade elasticities in centre-periphery models of growth and development," Banca Nazionale del Lavoro Quarterly Review, Banca Nazionale del Lavoro, vol. 36(146), pages 249-261.
    19. Juergen Donges & James Riedel, 1977. "The expansion of manufactured exports in developing countries: An empirical assessment of s upply and demand issues," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 113(1), pages 58-87, March.
    20. Esfahani, Hadi Salehi, 1991. "Exports, imports, and economic growth in semi-industrialized countries," Journal of Development Economics, Elsevier, vol. 35(1), pages 93-116, January.
    21. 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).
    22. Ardeni, Pier Giorgio & Wright, Brian, 1992. "The Prebisch-Singer Hypothesis: A Reappraisal Independent of Stationarity Hypotheses," Economic Journal, Royal Economic Society, vol. 102(413), pages 803-812, July.
    23. Burgstaller, A. & Saavedra-Rivano, N., 1984. "Capital mobility and growth in a North-South model," Journal of Development Economics, Elsevier, vol. 15(1-3), pages 213-237.
    24. Burgstaller, Andre, 1985. "North-South trade and capital flows in a ricardian model of accumulation," Journal of International Economics, Elsevier, vol. 18(3-4), pages 241-260, May.
    25. Bardhan, Pranab K & Lewis, Sydney, 1970. "Models of Growth with Imported Inputs," Economica, London School of Economics and Political Science, vol. 37(148), pages 373-385, November.
    26. Andrea Maneschi, 1983. "The Prebisch-Singer Thesis and the 'Widening Gap' between Developed and Developing Countries," Canadian Journal of Economics, Canadian Economics Association, vol. 16(1), pages 104-108, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ana Maria Bianchi & Cleofas Salviano, 1999. "Raúl Prebisch and the beginnings of the Latin American school of economics: a rhetorical perspective," Journal of Economic Methodology, Taylor & Francis Journals, vol. 6(3), pages 423-438.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ziesemer, Thomas HW, 1994. "Economic Development and Endogenous Terms-of-Trade Determination: Review and Reinterpretation of the Prebisch-Singer Thesis," MPRA Paper 54864, University Library of Munich, Germany.
    2. Bilge Erten, 2010. "Industrial Upgrading and Export Diversification: A Comparative Analysis of Economic Policies in Turkey and Malaysia," Working Papers id:2778, eSocialSciences.
    3. Ziesemer, Thomas, 1996. "Dissent on convergence : the role of public factors, international trade and path dependence," Research Memorandum 004, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
    4. 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.
    5. José Antonio Ocampo & María Angela Parra, 2004. "The commodity terms of trade and their strategic implications for development," International Trade 0403001, University Library of Munich, Germany.
    6. Prabirjit Sarkar, 2001. "The North-South terms of trade debate: a re-examination," Progress in Development Studies, , vol. 1(4), pages 309-327, October.
    7. Ziesemer, Thomas, 1995. "Growth with imported capital goods, limited export demand and foreign debt," Journal of Macroeconomics, Elsevier, vol. 17(1), pages 31-53.
    8. Hadass, Yael S & Williamson, Jeffrey G, 2003. "Terms-of-Trade Shocks and Economic Performance, 1870-1940: Prebisch and Singer Revisited," Economic Development and Cultural Change, University of Chicago Press, vol. 51(3), pages 629-656, April.
    9. William Darity & Lewis S. Davis, 2005. "Growth, trade and uneven development," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 29(1), pages 141-170, January.
    10. André Varella Mollick & João Ricardo Faria & Pedro H. Albuquerque & Miguel A. León-Ledesma, 2008. "Can globalisation stop the decline in commodities' terms of trade?," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 32(5), pages 683-701, September.
    11. Ros Jaime, 2013. "Latin America’s Trade and Growth Patterns, the China Factor, and Prebisch’s Nightmare," Journal of Globalization and Development, De Gruyter, vol. 3(2), pages 1-16, March.
    12. Blecker, Robert A., 1996. "The new economic integration: Structuralist models of North-South trade and investment liberalization," Structural Change and Economic Dynamics, Elsevier, vol. 7(3), pages 321-345, September.
    13. Thomas H. W. Ziesemer, 2023. "Semi-endogenous growth in a non-Walrasian DSEM for Brazil: estimation and simulation of changes in foreign income, human capital, R&D, and terms of trade," Economic Change and Restructuring, Springer, vol. 56(2), pages 1147-1183, April.
    14. Sérgio Kannebley Júnior & Amaury Patrick Gremaud & Ricardo de Almeida Rennó, 2001. "A Tendência Secular dos Termos de Troca Brasileiros Revisitida - 1850 a 2000," Anais do XXIX Encontro Nacional de Economia [Proceedings of the 29th Brazilian Economics Meeting] 018, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    15. Thomas Ziesemer, 2018. "Testing the Growth Links of Emerging Economies: Croatia in a Growing World Economy," Bulletin of Applied Economics, Risk Market Journals, vol. 5(1), pages 1-27.
    16. Thomas H.W. Ziesemer, 2014. "Country terms of trade: trends, unit roots, over-differencing, endogeneity, time dummies, and heterogeneity," International Review of Applied Economics, Taylor & Francis Journals, vol. 28(6), pages 767-796, September.
    17. Bernhard G. Gunter & Valeria Vargas Sejas, 2017. "Free Falling Terms of Trade Despite Industrialization: The Case of Bangladesh," Bangladesh Development Research Working Paper Series (BDRWPS) BDRWPS No. 33, Bangladesh Development Research Center (BDRC).
    18. Trofimov, Ivan D., 2018. "Income terms of trade and economic convergence: Evidence from Latin America," MPRA Paper 87598, University Library of Munich, Germany.
    19. Christine Mutz & Thomas Ziesemer, 2008. "Simultaneous estimation of income and price elasticities of export demand, scale economies and total factor productivity growth for Brazil," Applied Economics, Taylor & Francis Journals, vol. 40(22), pages 2921-2937.
    20. A. P. Thirlwall, 2013. "Economic Growth in an Open Developing Economy," Books, Edward Elgar Publishing, number 15208.

    More about this item

    Keywords

    development; growth; exports; terms of trade; Prebisch-Singer thesis;
    All these keywords.

    JEL classification:

    • F19 - International Economics - - Trade - - - Other
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:60502. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.