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The Terms of Trade Facing South Korea with Respect to Its Trade with LDCs and DMEs

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  • Kersti Berge
  • Trevor Crowe

Abstract

This paper examines the terms of trade for South Korea's trade in manufactures with developed and developing countries separately, using primary data for the construction of indices which cover the period 1976-95. During this period, there was no significant trend in South Korea's net barter terms of trade with developed market economies. However, income terms of trade rose, suggesting that South Korea has increased the volumes of her manufactured exports to DMEs without experiencing a fall in their relative price. With regard to trade in manufactures with developing countries , the paper finds a significant increase in South Korea's net barter terms of trade in manufactures and an even greater increase in the income terms of trade. In this case South Korea has seen a relative increase in prices at the same time as she has been able to increase the volume of manufactured exports to developing countries.

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  • Kersti Berge & Trevor Crowe, "undated". "The Terms of Trade Facing South Korea with Respect to Its Trade with LDCs and DMEs," QEH Working Papers qehwps12, Queen Elizabeth House, University of Oxford.
    • Handle: RePEc:qeh:qehwps:qehwps12
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    File URL: http://workingpapers.qeh.ox.ac.uk/RePEc/qeh/qehwps/qehwps12.pdf
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    1. D. Sapsford & P. Sarkar & H. W. Singer, 1992. "The prebisch‐singer terms of trade controversy revisited," Journal of International Development, John Wiley & Sons, Ltd., vol. 4(3), pages 315-332, May.
    2. Bleaney, Michael F & Greenaway, David, 1993. "Long-Run Trends in the Relative Price of Primary Commodities and in the Terms of Trade of Developing Countries," Oxford Economic Papers, Oxford University Press, vol. 45(3), pages 349-363, July.
    3. Cuddington, John T., 1992. "Long-run trends in 26 primary commodity prices : A disaggregated look at the Prebisch-Singer hypothesis," Journal of Development Economics, Elsevier, vol. 39(2), pages 207-227, October.
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    Cited by:

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    2. Jerzy Dudzinski & Renata Knap, 2021. "New Phenomena in the Price Movement of Manufactured Goods in Contemporary International Trade," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 1047-1056.

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