Terms of trade and manufactured exports from developing countries
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Date
1992-05
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Publisher
Latrobe University
Abstract
This paper examines the empirical validity of the singer hypothesis that,owing to certain country specific disadvantages, the net barier terms of trade (NBTT) for exports of manufactures from developing countries (ICs) tend to experience secular deterioration favouring the importing industrialised countries.(ICs). We estimate Irend rates of NBTT for manufactured exports from all DCs as well as from India, Korea and Taiwan, by applying an econometric procedure designed to avoid the problem of spurious trend estimation to a carefully assembled data set which avoids many pitfalls in the data used in previous studies. The results overwhelmingly reject the hypothesis and suggest that the shift away from primary commodities and towards manufactured goods in their export composition has allowed DCs to escape unequal exchange relations in their trade with ICs.
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Keywords
Trade manufactured export, Developing countries