Australian Capital Inflow, Sectional Prices and the Terms of Trade: 1870-1939

David H Pope

Australian Economic Papers, 1986, vol. 25, issue 46, 67-82

Abstract: The paper examines the role of "traded" and "domestic" goods prices in international capital transfers. Difficulties of measurement and conceptualization are discussed, and the causal relations between capital flows to Australia, Australia's terms of trade and "domestic prices" are investigated over the years 1870-1939 using Sargent's_(1976) dynamic regression test of Granger_(1969) causality. The results suggest: that capital inflow proceeded without causing the terms of trade of the importer to change; that the ratio of "domestic" to "traded" goods prices rose, helping to effect the capital transfer; and that "domestic" prices positively fedback on capital inflow. Copyright 1986 by Blackwell Publishers Ltd/University of Adelaide and Flinders University of South Australia

Date: 1986
References: Add references at CitEc
Citations: View citations in EconPapers (1)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
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: https://EconPapers.repec.org/RePEc:bla:ausecp:v:25:y:1986:i:46:p:67-82

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0004-900X

Access Statistics for this article

Australian Economic Papers is currently edited by Daniel Leonard

More articles in Australian Economic Papers from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().