EconPapers    
Economics at your fingertips  
 

Can Globalisation Stop the Decline in Commodities' Terms of Trade?

Andre Mollick (), João Faria, Pedro Albuquerque and Miguel Leon-Ledesma
Additional contact information
João Faria: MPA - Master in Public Administration - UTEP - University of Texas [El Paso]

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)
Date: 2008-01-19
References: Add references at CitEc
Citations: View citations in EconPapers (6)

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:
Journal Article: Can globalisation stop the decline in commodities' terms of trade? (2008) Downloads
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:hal:journl:halshs-00746269

DOI: 10.1093/cje/bem054

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().

 
Page updated 2025-03-22
Handle: RePEc:hal:journl:halshs-00746269