Terms of Trade Shifts and International Macroeconomic Fundamentals
Bibliographic Data
| ID | 10430485 |
|---|---|
| Authors | Ronald Johnson (corresponding author) |
| Year | 1993 |
| Volume | 21 |
| Issue | 3 |
| Pages | 73-85 |
| Publication date | 1993-03-01 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | The Review of Black Political Economy (JOURNAL) |
| Journal identifiers | ISSN: 0034-6446 • E-ISSN: 1936-4814 |
| Publisher | SAGE Publishing (PUBLISHER • US) |
| DOI | 10.1007/bf02701706 |
| OpenAlex | W2091205362 |
| Language | EN |
| References cited | 3 |
This paper focuses on the relationship between developing-country terms of trade and underlying economic fundamentals in the industrial economies. The focus is limited to the terms of trade of the five developing-country regions (Africa, Asia, Europe, the Middle East, and the Western Hemisphere). The analysis is based on a version of the arbitrage pricing model, which is used extensively in the literature on capital market analysis. This model links developing-country terms of trade to indicators of international macroeconomic fundamentals. In this model the terms of trade are characterized as the price of a hedge portfolio consisting of a long position in exports and a short position in imports. The primary finding is that there does not appear to be an important link between developing-country terms of trade and underlying fundamentals in the industrial countries
Arbitrage · Developing country · Economics · Financial economics · International economics · International trade · Portfolio · Position (finance · Terms of trade · Trade barrier · Western hemisphere · Global Financial Crisis and Policies · Market Dynamics and Volatility · Monetary Policy and Economic Impact
| Highly cited | No |
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