Market power, inelastic income elasticity of demand, and terms of trade

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Kujal, Praveen; Michelitsch, Roland;
  • Subject: Economía

The "Theory of Unequal Exchange" predicts that terms of trade for the producer of primary commodities worsen over time given the low income elasticity of demand for primary product exports and the market power of the industrialized countries. We set up a laborator... View more
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