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Journal Article

IDS Bulletin 37.1

China and the Global Terms of Trade

Published on 1 January 2006

The terms of trade have dominated development thinking since the early 1950s when Singer and Prebisch produced analyses of price trends, which suggested that there was a secular trend towards a fall in the commodities–manufactures terms of trade (Prebisch 1950; Singer 1950).

The Singer–Prebisch hypothesis was more complex than is often acknowledged, for it not only took into account the income and price elasticities of demand for different products, but also the role played by labour markets in price determination (Kaplinsky 2005a). It resulted in a widespread commitment to industrialisation, premised on the expectation that the relative price of manufactures would continue to rise, and that of commodities
to fall.

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IDS Bulletin 37.1

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Kaplinsky, R. (2006) China and the Global Terms of Trade. IDS Bulletin 37(1): 43-53

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Authors

Image of Raphael Kaplinsky
Raphael Kaplinsky

Emeritus Fellow

Publication details

authors
Kaplinsky, Raphael
journal
IDS Buletin, volume 37, issue 1
doi
10.1111/j.1759-5436.2006.tb00246.x
language
English

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Region
China

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