VOLUME I
SPRING 1993

THE CONTROVERSY ON THE EVOLUTION OF THE REAL TERMS OF TRADE WITH UNDERDEVELOPED COUNTRIES
 
CÁNDIDO MUÑOZ CIDAD
SIMÓN SOSVILLA RIVERO

Universidad Complutense de Madrid
 
The deterioration of the net barter of trade for underdeveloped countries (presumed exporters of raw materials) has been the subject of extensive discussion, particularly since its quantification, separately, by R. Prebisch and H. Singer. Nevertheless, the empirical evidence does not provide conclusive support for the existence of a clear tendency towards such a deterioration. This article presents a panoramic view of both the theoretical arguments which support what is today known as the Singer- Prebisch hypothesis, and of the studies which offer empirical documentation that can provide either support for, or refutation of, the said hypothesis.
 
Keywords: Singer-Prebisch hypothesis. Terms of trade. Unequal exchange. Primary exports.

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