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Measuring International And Inter‐Sectoral Terms Of Trade: Some Methodological Issues

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  • J. B. D. Derksen

Abstract

The view is expressed that the well‐known formulae for measuring changes in terms of trade cannot be used to conclude whether a country is better off or not. Other variables which reflect the impact upon production, employment, and the competitive position should also be taken into account. Similarly, changes in terms of trade between the industrial sectors of an economy cannot be used to conclude whether one sector is better off than others. Other factors which play a role include increases in productivity per man‐hour. These may help to explain why in some sectors prices increase less than in others. An attempt is made to illustrate this point using some statistics for the Netherlands.

Suggested Citation

  • J. B. D. Derksen, 1980. "Measuring International And Inter‐Sectoral Terms Of Trade: Some Methodological Issues," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 26(3), pages 341-349, September.
    • Handle: RePEc:bla:revinw:v:26:y:1980:i:3:p:341-349
    DOI: 10.1111/j.1475-4991.1980.tb00160.x
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    Cited by:

    1. Surajit Deb, 2002. "Terms of Trade in a Multi-Sectoral Framework: Analysis for All-India and States," Working papers 112, Centre for Development Economics, Delhi School of Economics.

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