eCite Digital Repository

Trend in the International Terms of Trade Between Primary Producers and Manufacturers


Bloch, HB and Sapsford, D, Trend in the International Terms of Trade Between Primary Producers and Manufacturers, Journal of International Development, 8, (1) pp. 53-67. ISSN 0954-1748 (1996) [Refereed Article]

DOI: doi:10.1002/(SICI)1099-1328(199601)8:1<53::AID-JID245>3.0.CO;2-X


Movements in the terms of trade between primary producers and manufacturers are analyzed using a model that introduces the influence of relative wage movements in the primary and manufacturing sectors as well as the influence of mark-up pricing in manufacturing. The model is estimated using data on the relative price of primary commodities and manufactured goods in international trade during the post-World War II (WWII) period. A decline in wages of primary-sector workers relative to those of workers in manufacturing and a rise in manufacturing margins are both estimated to have reduced the terms of trade for primary producers. However, expansion of manufacturing output is estimated to have a positive impact that has more than offset the negative influences during periods of moderate to strong growth.

Item Details

Item Type:Refereed Article
Research Division:Economics
Research Group:Applied economics
Research Field:International economics
Objective Division:Economic Framework
Objective Group:International trade policy
Objective Field:International trade policy not elsewhere classified
UTAS Author:Bloch, HB (Professor Harry Bloch)
ID Code:8439
Year Published:1996
Deposited By:Economics and Finance
Deposited On:1996-08-01
Last Modified:2011-08-19

Repository Staff Only: item control page