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The North-South terms of trade debate: a re-examination

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  • Prabirjit Sarkar

    (Rabindra Bharati University, Calcutta, India, Prabirjit@yahoo.com, Prabirjitsarkar@hotmail.com)

Abstract

Contrary to the classical proposition, the works of Prebisch and Singer launched the controversial hypothesis of long-term decline in the terms of trade of primary products vis-Ã -vis manufactures and a corresponding decline in the terms of trade of the South vis-Ã -vis the North. The present study traces the origin and evolution of the hypothesis and reviews the related statistical debate. It concludes that the empirical base of the Prebisch-Singer hypothesis is much stronger than it appeared in earlier decades. Reviewing some of the North-South models, the study also finds theoretical support for the Prebisch-Singer hypothesis.

Suggested Citation

  • Prabirjit Sarkar, 2001. "The North-South terms of trade debate: a re-examination," Progress in Development Studies, , vol. 1(4), pages 309-327, October.
    • Handle: RePEc:sae:prodev:v:1:y:2001:i:4:p:309-327
    DOI: 10.1177/146499340100100403
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    Cited by:

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    3. 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.
    4. Prabirjit Sarkar, 2008. "Trade Openness and Growth: Is There Any Link?," Journal of Economic Issues, Taylor & Francis Journals, vol. 42(3), pages 763-785, September.
    5. Konstantin M. Wacker, 2011. "The Impact of Foreign Direct Investment on Developing Countries’ Terms of Trade," WIDER Working Paper Series 006, World Institute for Development Economic Research (UNU-WIDER).
    6. Mohamed Saadi, 2011. "Technology Transfer, Foreign Direct Investment, Licensing and the Developing Countries’ Terms of Trade," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 5(4), pages 381-420, November.
    7. Rivera-Basques, Luisa & Duarte, Rosa & Sánchez-Chóliz, Julio, 2021. "Unequal ecological exchange in the era of global value chains: The case of Latin America," Ecological Economics, Elsevier, vol. 180(C).
    8. George Economakis & Maria Markaki & Alexios Anastasiadis, 2015. "Structural Analysis of the Greek Economy," Review of Radical Political Economics, Union for Radical Political Economics, vol. 47(3), pages 424-445, September.

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