Prebisch and Singer Effects on the Terms of Trade between Primary Producers and Manufacturers

  • Harry Bloch
  • David Sapsford


Papers by Prebisch (1950) and Singer (1950) argue that there is a secular decline in the terms of trade for developing countries in their dealings with the industrialized countries. Both Prebisch and Singer observe that exports from the developing countries are dominated by primary products, while imports are dominated by manufactured goods. They then associate the adverse change in terms of trade for developing countries with the decline in the price of primary products relative to the price of manufactures.


Wage Rate Capital Stock Wage Growth Reservation Wage Primary Sector 
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© Harry Bloch and David Sapsford 1998

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  • Harry Bloch
  • David Sapsford

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