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The commodity terms of trade and their strategic implications for development

Author

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  • José Antonio Ocampo

    (UN-DESA)

  • María Angela Parra

    (UN-DESA)

Abstract

Although the empirical literature is not unanimous about the existence of a continuous long-term deterioration in the terms of trade for commodities (the original and most common formulation of the Prebisch- Singer hypothesis) and, hence, about the possibility of inferring their future behaviour on this basis, there is a consensus as to the sharp drop in the barter terms of trade, especially from the 1920s on. This paper presents a critical review of the theoretical and empirical literature on the subject and the implications for development strategies.

Suggested Citation

  • 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.
    • Handle: RePEc:wpa:wuwpit:0403001
    Note: Type of Document - pdf; prepared on Win 98; to print on SEPHIS; pages: 31; figures: 4 tables, 3 figures
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    References listed on IDEAS

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    2. Ricardo Azevedo Araujo, 2016. "Assessing the dynamics of terms of trade inamodelof cumulative causation andstructural change," Brazilian Journal of Political Economy, Center of Political Economy, vol. 36(1), pages 150-167.
    3. Jungmann, Benjamin, 2021. "Growth drivers in emerging capitalist economies before and after the Global Financial Crisis," IPE Working Papers 172/2021, Berlin School of Economics and Law, Institute for International Political Economy (IPE).
    4. Jomo Kwame Sundaram & Rudiger von Arnim, 2008. "Economic liberalization and constraints to development in sub-Saharan africa," Working Papers 67, United Nations, Department of Economics and Social Affairs.

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    More about this item

    Keywords

    Terms of trade; Economic development;

    JEL classification:

    • F1 - International Economics - - Trade
    • F2 - International Economics - - International Factor Movements and International Business

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