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The North-South terms of trade debate: a re-examinationRabindra Bharati University, Calcutta, India, Prabirjit{at}yahoo.com, Prabirjitsarkar{at}hotmail.com Contrary to the classical proposition, the works of Prebisch and Singer launched the controversial hypothesis of long-term decline in the terms of trade of primary products vis-à-vis manufactures and a corresponding decline in the terms of trade of the South vis-à-vis the North. The present study traces the origin and evolution of the hypothesis and reviews the related statistical debate. It concludes that the empirical base of the Prebisch-Singer hypothesis is much stronger than it appeared in earlier decades. Reviewing some of the North-South models, the study also finds theoretical support for the Prebisch-Singer hypothesis.
Key Words: commodity prices North-South trade Prebisch-Singer hypothesis terms of trade unequal exchange uneven development
Progress in Development Studies, Vol. 1, No. 4,
309-327 (2001) This article has been cited by other articles:
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