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Export sophistication and the terms of trade of the developing and emerging countries

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  • Mohamed Saadi

Abstract

The question of the terms of trade has not yet been studied by the new empirical literature on the export sophistication, which focuses only on its effect on economic growth. The contribution of this paper is to investigate whether the increase in the export sophistication is terms of trade worsening or improving for the developing and emerging economies. Importantly, we find that the increase in the sophistication of the developing countries’ exports is accompanied by a deterioration of their terms of trade.

Suggested Citation

  • Mohamed Saadi, 2012. "Export sophistication and the terms of trade of the developing and emerging countries," International Review of Applied Economics, Taylor & Francis Journals, vol. 26(5), pages 623-642, October.
  • Handle: RePEc:taf:irapec:v:26:y:2012:i:5:p:623-642
    DOI: 10.1080/02692171.2011.631899
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    1. World Bank, 2002. "World Development Indicators 2002," World Bank Publications, The World Bank, number 13921, January.
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    Cited by:

    1. 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.

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