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Author Cashin, Paul, author.

Title Terms of trade shocks in Africa : are they short-lived or long-lived? / prepared by Paul Cashin and Catherine Pattillo
Published [Washington, D.C.] : International Monetary Fund, Research Department, 2000
©2000

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Description 1 online resource (51 pages) : illustrations
Series IMF working paper ; WP/00/72
IMF working paper ; WP/00/72.
Summary A country's terms of trade is one of the most important relative prices in economics, yet economists are largely ignorant of many of its empirical properties. The ratio of an index of a country's export prices to the prices of its imported goods defines the net barter terms of trade (NBTT), which measures the number of units of imports that can be exchanged for a unit of exports. Particularly for commodity-exporting developing countries, movements in the NBTT are key determinants of a country's macroeconomic performance, and have an important impact on real national incomes. For example, arabica coffee is the dominant exportable of Ethiopia. The slump in world arabica coffee prices in 1986-87, largely caused by world production in excess of consumption, resulted in a 40 percent fall in Ethiopia's terms of trade. As imports were about 15 percent of its national expenditure, this adverse movement in its terms of trade resulted in about a 6 percent decline in Ethiopia's real income. Such terms of trade-induced shocks to real incomes in developing countries necessitate a domestic policy response, but in framing an appropriate response, an important question is how long-lasting are typical shocks?
Bibliography Includes bibliographical references (pages 48-51)
Notes Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002. http://purl.oclc.org/DLF/benchrepro0212 MiAaHDL
English
digitized 2010 HathiTrust Digital Library committed to preserve pda MiAaHDL
Print version record
Subject Terms of trade -- Africa, Sub-Saharan
Imports -- Africa, Sub-Saharan
Exports -- Africa, Sub-Saharan
Prices -- Africa, Sub-Saharan
Exports
Imports
Prices
Terms of trade
Sub-Saharan Africa
Form Electronic book
Author Pattillo, Catherine A. (Catherine Anne), author
International Monetary Fund. Research Department, issuing body.
ISBN 1451895828
9781451895827
1281271489
9781281271488
1462359078
9781462359073
1452717974
9781452717975
9786613778321
661377832X
9781451849332
1451849338
ISSN 2227-8885