Commodity and Developing Country Terms of Trade: What Does the Long Run Show?

1991 ◽  
Vol 101 (409) ◽  
pp. 1485 ◽  
Author(s):  
Andrew Powell
Keyword(s):  
Developing Country ◽  
Terms Of Trade ◽  
Long Run

The Impact of Terms of Trade on the Export Structure of Manufactured Products in Different Economic Developing Status

2021 ◽  
Vol 1 (1) ◽  
pp. 59-67
Author(s):  
Kai-Ting Huang ◽  
Keyword(s):  
Time Series ◽  
Terms Of Trade ◽  
Development Status ◽  
Structural Time Series ◽  
Export Structure ◽  
Primary Products ◽  
Long Run ◽  
Deterministic Trend ◽  
Manufactured Products ◽  
The Impact

The Prebisch-Singer Hypothesis states that in structural time series analysis, the terms of trade between primary products and manufacturers have a negative deterministic trend. Many researchers argued that the deterioration in trade is the type of country in which the products are exported, regardless of whether the types of products exported by such countries are primary or manufactured products. This paper employs a development-differentiated model to analyze the correlation between various terms of trade and the export proportion of manufactured products on different economies of development status. In the long run, stable co-integration relations exist between terms of trade and the export proportion of manufactured products for development status. Furthermore, the increased proportion of manufactured products exports is the Granger casualty for the worse terms of trade for several economies of development status. The results demonstrated that changing the terms of trade is significantly influenced by structured changes in the export proportion of manufactured products for the development status of economies.

A Longitudinal Study of Metropolitan Density Patterns in a Developing Country: Puerto Rico, 1899–1970

1979 ◽  
Vol 11 (4) ◽  
pp. 423-433
Author(s):  
Suzanne Vaughan ◽  
K P Schwirian
Keyword(s):  
Economic Development ◽  
Puerto Rico ◽  
Longitudinal Study ◽  
Developing Country ◽  
Growth And Development ◽  
Metropolitan Areas ◽  
Human Settlements ◽  
Residential Patterns ◽  
Long Run ◽  
Developing Societies

One approach to the study of the growth and development of human settlements is through the analysis of changing residential patterns. The focus of this paper is upon the changing density patterns for Puerto Rico's three principal metropolitan areas from 1899–1970. The data show that San Juan's long-run residential deconcentration is consistent with the pattern usually displayed by cities in developed societies. The increasing congestion and stable concentration of Ponce and Mayaguez are consistent with the pattern found in cities in developing societies. Differences among the metropolitan areas are discussed in terms of the trajectory of Puerto Rico's economic development.

Risk Aversion and Unemployment in an Open Economy

2000 ◽  
Vol 49 (2) ◽  
Author(s):  
Pia Weiß
Keyword(s):  
Risk Aversion ◽  
Open Economy ◽  
Small Open Economy ◽  
Risk Behaviour ◽  
Terms Of Trade ◽  
Individual Risk ◽  
Risk Averse ◽  
Search Frictions ◽  
Long Run ◽  
The Impact

AbstractThe paper analyses the impact which risk aversion has on a small open economy characterised by search frictions on the labour market. It is shown that the long-run qualitative effects caused by a terms-of-trade shock are independent of individual risk behaviour. As far as quantitative aspects are concerned risk aversion always leads to higher equilibrium employment; however the increase in unemployment due to a price shock is the higher the more risk-averse individuals are.

UNDERSTANDING MIGRATION IN ALBANIA

2019 ◽  
Vol 10 (2) ◽  
pp. 153-160
Author(s):  
Meleq Hoxhaj ◽  
Ermelinda Kordha Tolica
Keyword(s):  
Economic Development ◽  
Developing Country ◽  
Short Term ◽  
Stages Of Development ◽  
Long Run ◽  
The Impact ◽  
Positive Effect

Migration is a phenomenon that has been present in many countries during their stages of development. Albania as a developing country is still facing migration in recent years. Since this phenomenon has resulted in obvious effects, researchers have dedicated a lot of work in relation to the impact in the countries’ development. The aim of the paper is to analyze the phenomenon of migration in Albania, its characteristics and its effects on the economy. A brief description of the migration stages and the related causes is provided at the beginning. Then, there are some data on migration in Albania today. The paper follows the link of migration with economic development. In short-term migration has a positive effect on the economy, impacts through remittances help alleviate poverty, but in long run, migrants create families in countries where they have migrated, resulting in a decline in remittances.

scholarly journals Econometric Analysis of Determinants of Real Effective Exchange Rate in Nigeria (1960-2015)

2016 ◽  
Vol 9 (1) ◽  
pp. 62-80 ◽  
Author(s):  
Waheed Ibrahim
Keyword(s):  
Exchange Rate ◽  
Crude Oil ◽  
Terms Of Trade ◽  
Oil Price ◽  
Real Effective Exchange Rate ◽  
Crude Oil Price ◽  
Long Run ◽  
Effective Exchange ◽  
Short Run ◽  
Effective Exchange Rate

Abstract This study investigates the determinants of real effective exchange rate in Nigeria for the period between 1960 and 2015 using the vector error correction mechanism to separate long run from the short run fundamentals. The findings from the regression estimates revealed that; terms of trade, openness of the economy, net capital inflow and total government expenditure were the major long run determinants of real effective exchange rate in the country while variables such as; broad money supply (M2), nominal effective exchange rate, structural adjustment program dummy, June 12 crisis and change to civil rule dummies were revealed as the major short run determinants of exchange rate in Nigeria between 1960 and 2015. The study concludes by recommending that since the major variable of terms of trade (crude oil price) is out of the government control, the effect of shocks due to the fluctuations of crude oil price can be minimized by shifting the economy from a mono-product nation and diversify the economy to increase productive capacity. Also, the change to civil rule dummy used in the study revealed that the system has not been friendly with the country’s real effective exchange rate, thus needing to review the system and bringing out all negative activities there in to ensure Nigeria’s currency appreciation. Guided openness is also suggested to avert the danger that unguided trade liberalization may bring into the country.

The Nexus between Resource Mobilization by Mutual Funds and Economic Growth in India

2012 ◽  
Vol 13 (1) ◽  
pp. 123-136 ◽  
Author(s):  
P.K. Mishra
Keyword(s):  
Economic Growth ◽  
Mutual Funds ◽  
Developing Country ◽  
Resource Mobilization ◽  
The Real ◽  
Long Run ◽  
Policy Variable ◽  
Short Run ◽  
The Relationship

Mutual funds allow for portfolio diversification and relative risk aversion through collection of funds from the households and investment of the same in the stock and debt markets. In this process, mutual funds industry plays the most important role of a resource mobilizer. As a resource mobilizer, the industry collects the investible surpluses from the surplus-spending units and channelizes the same to the deficit-spending units of an economy. Such a function has wide relevance for a developing country like India. Arguably, mutual funds industry as a resource mobilizer appears to contribute to real economic growth of a country by reducing the transaction costs and raising the purchasing power of the investors. Thus, this article is an attempt to investigate the dynamics of the relationship between gross funds mobilized by mutual funds and the real economic growth of a developing country like India for the period 1970–71 to 2008–09. Using the time series econometric techniques of cointegration and error correction estimates, the study concludes that the growth in real gross domestic product Granger causes gross resource mobilization by mutual funds in the long run, but not in the short run. This finding supports the demand-following hypothesis and thus, the policy implication is that the real economic growth of India may be considered as the policy variable to augment the resource mobilization by mutual funds.

scholarly journals Will the AI Revolution Cause a Great Divergence?

2020 ◽  
Vol 20 (184) ◽  
Author(s):  
Cristian Alonso ◽  
Andrew Berg ◽  
Siddharth Kothari ◽  
Chris Papageorgiou ◽  
Sidra Rehman
Keyword(s):  
Developing Country ◽  
Distinct Type ◽  
Fundamental Difference ◽  
Terms Of Trade ◽  
Extended Model ◽  
New Wave ◽  
Unskilled Labor ◽  
Great Divergence ◽  
Increase In Productivity ◽  
Set Up

This paper considers the implications for developing countries of a new wave of technological change that substitutes pervasively for labor. It makes simple and plausible assumptions: the AI revolution can be modeled as an increase in productivity of a distinct type of capital that substitutes closely with labor; and the only fundamental difference between the advanced and developing country is the level of TFP. This set-up is minimalist, but the resulting conclusions are powerful: improvements in the productivity of “robots” drive divergence, as advanced countries differentially benefit from their initially higher robot intensity, driven by their endogenously higher wages and stock of complementary traditional capital. In addition, capital—if internationally mobile—is pulled “uphill”, resulting in a transitional GDP decline in the developing country. In an extended model where robots substitute only for unskilled labor, the terms of trade, and hence GDP, may decline permanently for the country relatively well-endowed in unskilled labor.

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