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Moreover, Odedokun's (1997) study on African countries shows that improvements in the term of trade derived from falling imports prices appreciate the REER, but this does not occur when such improvements come from rising exports prices.
For example, in Brazil, higher prices for its commodity exports and cheap imports of manufactured goods improved its term of trade with China by 52% between 2001 and 2007.
Similar(58)
One is a terms-of-trade shift.
The role of the term-of-trade has been in the air for long and was articulated by ten Raa and Mohnen ([2002]).
Likewise, the terms-of-trade motive has rather limited potential for strategic burden shifting.
With asymmetric trading structures, the gains can be sizable since, in addition to internalizing the terms-of-trade externality, the planner optimally engineers a terms-of-trade bias that favors the country with a larger traded sector.
A perfectly competitive economy shows only the first two effects, technical change and the terms-of-trade effect.
4. Magnitudes in GDP terms of terms-of-trade gains and their subsequent partial unwinding along the cycle have varied substantially among countries.
At the neighbourhood level this is even more evident: nearly no policies involve a relevant public cost to be assessed in term of trade-offs, but this does not mean that all policies have no social cost.
No. Their terms of trade?
That was the terms of trade.
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