Commodity Prices and the Terms of Trade

Prasad V. Bidarkota () and Mario John Crucini ()

Review of International Economics, 2000, vol. 8, issue 4, pages 647-66

Abstract: On combining national terms-of-trade data for developing countries with world prices of internationally traded primary commodities, it is found that variation in the world prices of three or fewer key exported commodities account for 50% or more of the annual variation in the terms of trade of a typical developing country. A considerable fraction of the variation is specific to a particular commodity and, given that the overall importance of primary commodities differs across developing countries, it is possible to account for much of the heterogeneity across them. It is concluded that commodity price fluctuations should be central features of two related literatures: studies of business cycle transmission across developing and industrialized nations, and empirical work aimed at constructing perpetual claims on developing country incomes as suggested by Shiller in 1995. Copyright 2000 by Blackwell Publishing Ltd.

Date: 2000
View citations in EconPapers

Downloads: (external link)
http://www.blackwell-synergy.com/servlet/useragent ... &year=2000&part=null link to full text (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Commodity Prices and the Terms of Trade (1997)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:bla:reviec:v:8:y:2000:i:4:p:647-66

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0965-7576

Access Statistics for this article

Review of International Economics is edited by E. Kwan Choi

More articles in Review of International Economics from Blackwell Publishing
Series data maintained by Christopher F. Baum ().