 Can Globalisation Stop the Decline in Commodities' Terms of Trade?Andre Mollick (),
João Faria,
Pedro Albuquerque and
Miguel Leon-Ledesma
Post-Print from HAL Abstract: 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. Keywords: Economic integration; Globalisation; Prebisch-Singer (search for similar items in EconPapers) Published in Cambridge Journal of Economics, 2008, 32 (5), pp.683-701. ⟨10.1093/cje/bem054⟩ There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-00746269 DOI: 10.1093/cje/bem054 Access Statistics for this paper More papers in Post-Print from HAL |
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