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North-South terms-of-trade trends from 1960 to 2006

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  • Bilge Erten

Abstract

The composition of exports of developing countries is increasingly dominated by manufactured goods. This has not changed the fact that their major trading partners continue to be the developed countries. In order to properly assess the distribution of gains from trade, there is a pressing need to analyze the movements in the terms of trade of developing countries with respect to the developed ones. A statistical analysis of the North-South terms of trade reveals that the terms of trade have turned against the South since the 1960s. However, the terms-of-trade deterioration is neither continuous nor evenly distributed over different country groupings. The existence of a structural break in the mid-to-late 1970s together with the greatest adverse terms-of-trade movements against the highly indebted and least developed countries attest the discontinuity and unevenness of this process.

Suggested Citation

  • Bilge Erten, 2011. "North-South terms-of-trade trends from 1960 to 2006," International Review of Applied Economics, Taylor & Francis Journals, vol. 25(2), pages 171-184.
    • Handle: RePEc:taf:irapec:v:25:y:2011:i:2:p:171-184
    DOI: 10.1080/02692171.2010.483469
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    References listed on IDEAS

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    1. Hadass, Yael S & Williamson, Jeffrey G, 2003. "Terms-of-Trade Shocks and Economic Performance, 1870-1940: Prebisch and Singer Revisited," Economic Development and Cultural Change, University of Chicago Press, vol. 51(3), pages 629-656, April.
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    3. Prebisch, Raúl, 1950. "The economic development of Latin America and its principal problems," Sede de la CEPAL en Santiago (Estudios e Investigaciones) 29973, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
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    Cited by:

    1. Trofimov, Ivan D., 2018. "Income terms of trade and economic convergence: Evidence from Latin America," MPRA Paper 87598, University Library of Munich, Germany.
    2. 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.
    3. Erten, Bilge & Ocampo, José Antonio, 2013. "Super Cycles of Commodity Prices Since the Mid-Nineteenth Century," World Development, Elsevier, vol. 44(C), pages 14-30.
    4. Trofimov, Ivan D., 2017. "Profit rates in the developed capitalist economies: a time series investigation," MPRA Paper 79529, University Library of Munich, Germany.
    5. Andrea Ricci, 2016. "Unequal Exchange in International Trade:A General Model," Working Papers 1605, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini, revised 2016.
    6. Murat Arsel & Andrew M. Fischer, 2015. "Forum 2015," Development and Change, International Institute of Social Studies, vol. 46(4), pages 700-732, July.
    7. Bernhard G. Gunter & Valeria Vargas Sejas, 2017. "Free Falling Terms of Trade Despite Industrialization: The Case of Bangladesh," Bangladesh Development Research Working Paper Series (BDRWPS) BDRWPS No. 33, Bangladesh Development Research Center (BDRC).
    8. Darrin Downes & Tarron Khemraj, 2019. "Foreign Exchange Pressure in Barbados: Monetary Approach or Monetary Dependence?," Review of Political Economy, Taylor & Francis Journals, vol. 31(2), pages 159-177, April.
    9. Ivan D. Trofimov, 2017. "Profit rates in the developed capitalist economies: a time series investigation," PSL Quarterly Review, Economia civile, vol. 70(281), pages 85-128.

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