Can Globalisation Stop the Decline in Commodities' Terms of Trade?
André Varella Mollick
(1)
,
João Ricardo Faria
(2)
,
Pedro Albuquerque
(3, 4)
,
Miguel A. León-Ledesma
(5)
Pedro Albuquerque
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- PersonId : 232
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Résumé
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.
Domaines
Economies et financesFormat du dépôt | Notice |
---|---|
Type de dépôt | Article dans une revue |
Titre |
en
Can Globalisation Stop the Decline in Commodities' Terms of Trade?
|
Résumé |
en
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.
|
Auteur(s) |
André Varella Mollick
1
, João Ricardo Faria
2
, Pedro Albuquerque
3, 4
, Miguel A. León-Ledesma
5
1
CoBA -
College of Business Administration
( 205991 )
- 1201 W University Dr. Edinburg, TX 78539
- États-Unis
2
MPA -
Master in Public Administration
( 205992 )
- 500 W. University, Kelly Hall 418 El Paso, Texas 79968
- États-Unis
3
Euromed Marseille - École de management
( 153634 )
- Rue Antoine Bourdelle - Domaine de Luminy - BP 921 - 3288 Marseille Cedex 9
- France
4
DEFI -
Centre de recherche en développement économique et finance internationale
( 174640 )
- 14 Avenue Jules Ferry, 13621 Aix en Provence Cedex
- France
5
School of Economics
( 205993 )
- Keynes College University of Kent Canterbury, Kent, CT2 7NP
- Royaume-Uni
|
Comité de lecture |
Oui
|
Vulgarisation |
Non
|
Langue du document |
Anglais
|
Nom de la revue |
|
Date de production/écriture |
2007
|
Audience |
Internationale
|
Date de publication |
2008-01-19
|
Volume |
32
|
Numéro |
5
|
Page/Identifiant |
683-701
|
Domaine(s) |
|
Mots-clés (JEL) |
|
Mots-clés |
it
Economic integration, Globalisation, Prebisch-Singer
|
DOI | 10.1093/cje/bem054 |
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