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The Terms of Trade between the United Kingdom and British India, 1858-1947

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  • Appleyard, Dennis R

Abstract

The commodity terms of trade of the United Kingdom with British India for 1858-1947 are calculated. Unit value indexes for a sample containing over three-quarters of UK/India trade indicate a slight improvement for the United Kingdom from 1858 to 1917. This improvement was likely attributable to falling transport costs for British imports and was therefore not associated with a decline in India's terms of trade with Britain. For 1917-47, there was substantial UK terms-of-trade improvement, a rise not due solely to declining transport costs and which, ceteris paribus, thus implied that India's terms of trade with the United Kingdom deteriorated. The 1917-47 UK improvement brought the amount of increase for the whole 1858-1947 period to an annual average of almost 1%.

Suggested Citation

  • Appleyard, Dennis R, 2006. "The Terms of Trade between the United Kingdom and British India, 1858-1947," Economic Development and Cultural Change, University of Chicago Press, vol. 54(3), pages 635-654, April.
  • Handle: RePEc:ucp:ecdecc:y:2006:v:54:i:3:p:635-54
    DOI: 10.1086/500031
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    References listed on IDEAS

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    Cited by:

    1. Ghoshray, Atanu, 2015. "A robust estimation of the terms of trade between the United Kingdom and British India, 1858–1947," Economic Modelling, Elsevier, vol. 51(C), pages 53-57.

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