Commodity terms of trade and individual countries' net barter terms of trade: Is there an empirical relationship?
✍ Scribed by Matthias G. Lutz
- Publisher
- John Wiley and Sons
- Year
- 1999
- Tongue
- English
- Weight
- 133 KB
- Volume
- 11
- Category
- Article
- ISSN
- 0954-1748
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✦ Synopsis
This paper examines the statistical relationship between aggregate commodity terms of trade and the net barter terms of trade of 66 non-oil developing countries. Stationarity of the estimated long-run equation is tested for each country using Engle± Granger ADF tests. Four dierent commodity terms of trade series are examined. For more than half the sample a stationary long-run relationship is detected. The responsiveness of the country terms of trade to the overall index varies considerably between countries. These ®ndings suggest that the long-term trend in the overall terms of trade is still relevant to developing countries today.