Whither the terms of trade? an elaboration of the Prebisch-Singer hypothesis
Movements in the prices of primary products and manufactured goods are analysed using a model that introduces differences in wage and price determination between primary production and manufacturing. Wages and prices in primary production are treated as competitively determined, while prices and wag...
| Main Authors: | , |
|---|---|
| Format: | Journal Article |
| Published: |
Oxford University Press
2000
|
| Online Access: | http://hdl.handle.net/20.500.11937/47361 |
| _version_ | 1848757811482198016 |
|---|---|
| author | Bloch, Harry Sapsford, D. |
| author_facet | Bloch, Harry Sapsford, D. |
| author_sort | Bloch, Harry |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | Movements in the prices of primary products and manufactured goods are analysed using a model that introduces differences in wage and price determination between primary production and manufacturing. Wages and prices in primary production are treated as competitively determined, while prices and wages in manufacturing are determined by mark-up pricing and union-employer bargaining, respectively. The objective is to capture the influence of structural differences between manufacturing and primary production on the terms of trade between industrialised and developing worlds as discussed in the seminal contributions to the development literature by Raul Prebisch and Hans Singer. The model is estimated using price and wage data from the post-World War II period. Support is found for the Prebisch-Singer hypothesis; however, our estimates suggest that, during periods of particularly rapid manufacturing growth, there have been intervals of net improvement in the terms of trade of primary producers. |
| first_indexed | 2025-11-14T09:34:02Z |
| format | Journal Article |
| id | curtin-20.500.11937-47361 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T09:34:02Z |
| publishDate | 2000 |
| publisher | Oxford University Press |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-473612018-12-14T00:54:55Z Whither the terms of trade? an elaboration of the Prebisch-Singer hypothesis Bloch, Harry Sapsford, D. Movements in the prices of primary products and manufactured goods are analysed using a model that introduces differences in wage and price determination between primary production and manufacturing. Wages and prices in primary production are treated as competitively determined, while prices and wages in manufacturing are determined by mark-up pricing and union-employer bargaining, respectively. The objective is to capture the influence of structural differences between manufacturing and primary production on the terms of trade between industrialised and developing worlds as discussed in the seminal contributions to the development literature by Raul Prebisch and Hans Singer. The model is estimated using price and wage data from the post-World War II period. Support is found for the Prebisch-Singer hypothesis; however, our estimates suggest that, during periods of particularly rapid manufacturing growth, there have been intervals of net improvement in the terms of trade of primary producers. 2000 Journal Article http://hdl.handle.net/20.500.11937/47361 10.1093/cje/24.4.461 Oxford University Press restricted |
| spellingShingle | Bloch, Harry Sapsford, D. Whither the terms of trade? an elaboration of the Prebisch-Singer hypothesis |
| title | Whither the terms of trade? an elaboration of the Prebisch-Singer hypothesis |
| title_full | Whither the terms of trade? an elaboration of the Prebisch-Singer hypothesis |
| title_fullStr | Whither the terms of trade? an elaboration of the Prebisch-Singer hypothesis |
| title_full_unstemmed | Whither the terms of trade? an elaboration of the Prebisch-Singer hypothesis |
| title_short | Whither the terms of trade? an elaboration of the Prebisch-Singer hypothesis |
| title_sort | whither the terms of trade? an elaboration of the prebisch-singer hypothesis |
| url | http://hdl.handle.net/20.500.11937/47361 |