Assessing the dynamics of terms of trade in a model of cumulative causation and structural change

Assessing the dynamics of terms of trade in a model of cumulative causation and structural change

ABSTRACT The motivation for this paper stems from the steady decline in the share of consumer expenditures on goods produced in the global south, coupled with the (empirically ambiguous) Singer/Prebisch hypothesis that this can be explained by a secular decline in the southern terms of trade. Drawing on these sources of inspiration, the paper sets out to study the dynamics of the terms of trade using a multi-sector growth model based on the principle of cumulative causation. The upshot is a North-South model of growth and trade in which the evolution of the terms of trade depends on differential rates of productivity growth in different sectors of the economy - and in which terms of trade dynamics may not be the best guide as to whether or not there is an uneven development problem.

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Main Author: ARAUJO,RICARDO AZEVEDO
Format: Digital revista
Language:English
Published: Centro de Economia Política 2016
Online Access:http://old.scielo.br/scielo.php?script=sci_arttext&pid=S0101-31572016000100150
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spelling oai:scielo:S0101-315720160001001502016-02-16Assessing the dynamics of terms of trade in a model of cumulative causation and structural changeARAUJO,RICARDO AZEVEDO structural economic dynamics terms of trade ABSTRACT The motivation for this paper stems from the steady decline in the share of consumer expenditures on goods produced in the global south, coupled with the (empirically ambiguous) Singer/Prebisch hypothesis that this can be explained by a secular decline in the southern terms of trade. Drawing on these sources of inspiration, the paper sets out to study the dynamics of the terms of trade using a multi-sector growth model based on the principle of cumulative causation. The upshot is a North-South model of growth and trade in which the evolution of the terms of trade depends on differential rates of productivity growth in different sectors of the economy - and in which terms of trade dynamics may not be the best guide as to whether or not there is an uneven development problem.info:eu-repo/semantics/openAccessCentro de Economia PolíticaBrazilian Journal of Political Economy v.36 n.1 20162016-03-01info:eu-repo/semantics/articletext/htmlhttp://old.scielo.br/scielo.php?script=sci_arttext&pid=S0101-31572016000100150en10.1590/0101-31572016v36n01a09
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country Brasil
countrycode BR
component Revista
access En linea
databasecode rev-scielo-br
tag revista
region America del Sur
libraryname SciELO
language English
format Digital
author ARAUJO,RICARDO AZEVEDO
spellingShingle ARAUJO,RICARDO AZEVEDO
Assessing the dynamics of terms of trade in a model of cumulative causation and structural change
author_facet ARAUJO,RICARDO AZEVEDO
author_sort ARAUJO,RICARDO AZEVEDO
title Assessing the dynamics of terms of trade in a model of cumulative causation and structural change
title_short Assessing the dynamics of terms of trade in a model of cumulative causation and structural change
title_full Assessing the dynamics of terms of trade in a model of cumulative causation and structural change
title_fullStr Assessing the dynamics of terms of trade in a model of cumulative causation and structural change
title_full_unstemmed Assessing the dynamics of terms of trade in a model of cumulative causation and structural change
title_sort assessing the dynamics of terms of trade in a model of cumulative causation and structural change
description ABSTRACT The motivation for this paper stems from the steady decline in the share of consumer expenditures on goods produced in the global south, coupled with the (empirically ambiguous) Singer/Prebisch hypothesis that this can be explained by a secular decline in the southern terms of trade. Drawing on these sources of inspiration, the paper sets out to study the dynamics of the terms of trade using a multi-sector growth model based on the principle of cumulative causation. The upshot is a North-South model of growth and trade in which the evolution of the terms of trade depends on differential rates of productivity growth in different sectors of the economy - and in which terms of trade dynamics may not be the best guide as to whether or not there is an uneven development problem.
publisher Centro de Economia Política
publishDate 2016
url http://old.scielo.br/scielo.php?script=sci_arttext&pid=S0101-31572016000100150
work_keys_str_mv AT araujoricardoazevedo assessingthedynamicsoftermsoftradeinamodelofcumulativecausationandstructuralchange
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