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Can globalisation stop the decline in commodities' terms of trade?

Mollick, Andre Varella, Faria, Joao Ricardo, Albuquerque, Pedro H., Leon-Ledesma, Miguel A. (2008) Can globalisation stop the decline in commodities' terms of trade? Cambridge Journal of Economics, 32 (5). pp. 683-701. ISSN 0309-166X. (doi:10.1093/cje/bem054) (The full text of this publication is not currently available from this repository. You may be able to access a copy if URLs are provided) (KAR id:15537)

The full text of this publication is not currently available from this repository. You may be able to access a copy if URLs are provided.
Official URL:
http://dx.doi.org/10.1093/cje/bem054

Abstract

In this paper we address the following question: would a fully integrated world economy eliminate the widely reported decline in the terms of trade of primary commodities? We address the question by looking at the terms of trade within the US (a highly integrated economy). Our findings show two results. First, US internal real commodities' terms of trade over the 1947-1998 period experienced slowly declining but significant trends. Second, once we control for the effect of US prices on international terms of trade, we find a long-run relationship between the US and international relative prices. These findings support the view that the decline of commodities' terms of trade bears no relationship with the process of globalisation. This seems to indicate that, if world terms of trade behaved as the US terms of trade, neither increased integration nor protectionist measures would eliminate this trend.

Item Type: Article
DOI/Identification number: 10.1093/cje/bem054
Uncontrolled keywords: economic integration; globalisation; Prebisch-Singer
Subjects: H Social Sciences > HB Economic Theory
Divisions: Divisions > Division of Human and Social Sciences > School of Economics
Depositing User: Maureen Cook
Date Deposited: 13 Jan 2010 13:52 UTC
Last Modified: 05 Nov 2024 09:50 UTC
Resource URI: https://kar.kent.ac.uk/id/eprint/15537 (The current URI for this page, for reference purposes)

University of Kent Author Information

Leon-Ledesma, Miguel A..

Creator's ORCID: https://orcid.org/0000-0002-3558-2990
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