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Trend in the International Terms of Trade Between Primary Producers and Manufacturers
journal contribution
posted on 2023-05-16, 10:17 authored by Bloch, HB, Sapsford, DMovements 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.
History
Publication title
Journal of International DevelopmentVolume
8Pagination
53-67ISSN
0954-1748Department/School
TSBEPublisher
John Wiley & Sons, Ltd.Place of publication
United KingdomRepository Status
- Restricted