Description |
1 online resource (51 pages) : illustrations |
Series |
IMF working paper ; WP/00/72 |
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IMF working paper ; WP/00/72.
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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 |
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English |
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digitized 2010 HathiTrust Digital Library committed to preserve pda MiAaHDL |
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Print version record |
Subject |
Terms of trade -- Africa, Sub-Saharan
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Imports -- Africa, Sub-Saharan
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Exports -- Africa, Sub-Saharan
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Prices -- Africa, Sub-Saharan
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Exports
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Imports
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Prices
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Terms of trade
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Sub-Saharan Africa
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Form |
Electronic book
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Author |
Pattillo, Catherine A. (Catherine Anne), author
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International Monetary Fund. Research Department, issuing body.
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ISBN |
1451895828 |
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9781451895827 |
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1281271489 |
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9781281271488 |
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1462359078 |
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9781462359073 |
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1452717974 |
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9781452717975 |
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9786613778321 |
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661377832X |
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9781451849332 |
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1451849338 |
ISSN |
2227-8885 |
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