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Author:Bahmani-Oskooee, M.
Title:Deterioration in he terms-of-trade improves the balance of payments even if not the trade balance: evidence from LDCs
Journal:Quarterly Review of Economics and Business
1990 : AUTUMN, VOL. 30:3, p.73-84
Index terms:INTERNATIONAL ECONOMICS
BALANCE OF PAYMENTS
Language:eng
Abstract:The paper provides theoretical reasoning and empirical support that a deterioration in the terms of trade can improve the balance of payments even when it has no effect on the trade balance. The argument is supported by estimating short- and long-run effects for four developing countries, using quarterly data over the 1975-1985 period.
SCIMA record nr: 87170
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