Prebisch-Singer Thesis

Does the recent rise in primary commodity prices invalidate the Prebisch-Singer-Thesis?

Business & Finance
Cover of the book Prebisch-Singer Thesis by Thomas Ihrke, GRIN Publishing
View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart
Author: Thomas Ihrke ISBN: 9783640314409
Publisher: GRIN Publishing Publication: April 22, 2009
Imprint: GRIN Publishing Language: English
Author: Thomas Ihrke
ISBN: 9783640314409
Publisher: GRIN Publishing
Publication: April 22, 2009
Imprint: GRIN Publishing
Language: English

Essay from the year 2008 in the subject Business economics - Miscellaneous, grade: 2,0, Berlin School of Economics, language: English, abstract: Today we have two major approaches when it comes to trade policies. The first block is promoting a free-trade policy. The main argument here is, that everyone is better off, if they were specialise in products in which they have a comparative advantage (Ricardian thinking). Against Ricardo's basic idea of free trade and comparative advantages argues the Prebisch-Singer thesis. The Prebisch-Singer thesis (referred to hereafter as P-S thesis) argues that especially developing countries are not better off by specialisation in that what they can do best. This thesis has shown that developing countries rather suffer from it specialisation of producing primary commodities than benefit from, at least when we talk about a time period of the last century. But this long-term deterioration in the commodity prices came to an end by the year 2002, where we have seen a tremendous comeback of the commodity markets. The prices of primary commodities such as wheat, cooper and crude-oil etc. have risen very sharply in the last years. The effect for many developing countries, which mainly produces such primary commodities benefits extremely from this recent development. Does this commodity boom means that the P-S thesis is not valid anymore or can we compare this recent boom in the primary commodity sector with the situation in the early 1970, where we could also see a sharp increase in commodity prices and after a while the primary commodity prices continues its long-term downward trend?

View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart

Essay from the year 2008 in the subject Business economics - Miscellaneous, grade: 2,0, Berlin School of Economics, language: English, abstract: Today we have two major approaches when it comes to trade policies. The first block is promoting a free-trade policy. The main argument here is, that everyone is better off, if they were specialise in products in which they have a comparative advantage (Ricardian thinking). Against Ricardo's basic idea of free trade and comparative advantages argues the Prebisch-Singer thesis. The Prebisch-Singer thesis (referred to hereafter as P-S thesis) argues that especially developing countries are not better off by specialisation in that what they can do best. This thesis has shown that developing countries rather suffer from it specialisation of producing primary commodities than benefit from, at least when we talk about a time period of the last century. But this long-term deterioration in the commodity prices came to an end by the year 2002, where we have seen a tremendous comeback of the commodity markets. The prices of primary commodities such as wheat, cooper and crude-oil etc. have risen very sharply in the last years. The effect for many developing countries, which mainly produces such primary commodities benefits extremely from this recent development. Does this commodity boom means that the P-S thesis is not valid anymore or can we compare this recent boom in the primary commodity sector with the situation in the early 1970, where we could also see a sharp increase in commodity prices and after a while the primary commodity prices continues its long-term downward trend?

More books from GRIN Publishing

Cover of the book Captured in neutrality? by Thomas Ihrke
Cover of the book Representation of Trauma and Recovery in Bryony Lavery's Play Frozen by Thomas Ihrke
Cover of the book The use of Positive Politeness Strategies considering a Specific Speech Act. by Thomas Ihrke
Cover of the book A Never-Ending Quarrel - Bob Dylan and Society by Thomas Ihrke
Cover of the book British Newspaper Development - From the 17th century to the age of globalization by Thomas Ihrke
Cover of the book An examination of the extent to which Rousseau reconciled the claims of the individual and the community by Thomas Ihrke
Cover of the book Sport Management. Sponsoring in General by Thomas Ihrke
Cover of the book Borderline personality disorder by Thomas Ihrke
Cover of the book The Competitiveness of West African Economies in the Chinese Market by Thomas Ihrke
Cover of the book Alice in Wonderland and Peter Pan by Thomas Ihrke
Cover of the book Die Entwicklung des Vertrages über eine Verfassung für Europa by Thomas Ihrke
Cover of the book Analysis of the bio- and nano-technological market of Germany to find market entry strategies for chosen IBM Research Developments by Thomas Ihrke
Cover of the book Social Networks & Social Network Analysis in Companies by Thomas Ihrke
Cover of the book Heroism in Anita Rau Badami's novel 'The Hero's Walk'. An analysis of the female protagonists by Thomas Ihrke
Cover of the book A Contrastive Analysis of the English and the German Sound System by Thomas Ihrke
We use our own "cookies" and third party cookies to improve services and to see statistical information. By using this website, you agree to our Privacy Policy