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The terms of trade debate and the policy implications for primary product producers

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  • Tilton, John E.

Abstract

The terms of trade debate initiated by Raul Prebisch and Hans Singer over 60 years ago continues to this day and is unlikely to be resolved soon. However, even if Prebisch and Singer are right and the terms of trade of countries exporting primary products are falling, to suggest that these countries should diversify away from the production of mineral commodities and other primary products, as many have done, may be poor policy advice, encouraging countries to abandon a promising source of wealth with which to foster economic development.

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  • Tilton, John E., 2013. "The terms of trade debate and the policy implications for primary product producers," Resources Policy, Elsevier, vol. 38(2), pages 196-203.
    • Handle: RePEc:eee:jrpoli:v:38:y:2013:i:2:p:196-203
    DOI: 10.1016/j.resourpol.2012.12.001
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    More about this item

    Keywords

    Terms of trade debate; Prebisch Singer thesis; Resource curse; Natural resource wealth and economic development; Primary product prices and production costs;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • L7 - Industrial Organization - - Industry Studies: Primary Products and Construction
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy

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