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Journal articles on the topic 'Effect of terms of trade on'

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Published: 4 June 2021

Last updated: 8 February 2022

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1

Campolmi, Alessia, Harald Fadinger, and Chiara Forlati. "Trade policy: Home market effect versus terms-of-trade externality." Journal of International Economics 93, no. 1 (May 2014): 92–107. http://dx.doi.org/10.1016/j.jinteco.2013.12.010.

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2

Ai-Young Kim. "Effect of Terms of Trade on Trade Balances: Evidence from Korea." Journal of International Trade & Commerce 10, no. 6 (December 2014): 989–1002. http://dx.doi.org/10.16980/jitc.10.6.201412.989.

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3

Gnangnon, Sèna Kimm. "Multilateral Trade Liberalization and Terms of Trade Volatility." Journal of International Commerce, Economics and Policy 09, no. 03 (October 2018): 1850007. http://dx.doi.org/10.1142/s1793993318500072.

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The world has experienced in recent years a rising anti-trade and anti-globalization sentiment, which would likely jeopardize recent efforts by the international trade community, in particular Members of the World Trade Organization (WTO), to promote multilateral trade liberalization (MTP). The current article investigates the impact of MTP on countries’ terms of trade volatility. Results based on a large panel dataset suggest that MTP exerts a significant reducing effect on countries’ terms of trade volatility. However, this impact appears to be dependent on countries’ development level. The take-home message is that greater cooperation on trade matters, including among WTO Members would help promote multilateral trade liberalization, which would surely contribute to reducing terms of trade volatility, for the benefits of all countries, in particular developing economies.

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4

Lukáčik, Martin, Karol Szomolányi, and Adriana Lukáčiková. "Terms-of-Trade Shocks and Slovak Economy." Acta Universitatis Bohemiae Meridionalis 19, no. 1 (June 1, 2016): 10–19. http://dx.doi.org/10.1515/acta-2016-0006.

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Abstract Using the structural vector auto-regression analysis of the terms-of-trade, trade balance, output, consumption and investment cyclical components we show that the relationship between the terms-of-trade and trade balance is negative and that the terms-of-trade shocks explain only a small fraction of business cycles in the Slovak economy. We use quarterly data in constant prices in the period 1997-2014. The results are in line with the theoretical and empirical studies in the contemporary world economic literature. The negative relationship between the terms-of-trade and the trade balance confirms a theoretical Obstfeld-Svensson-Razin effect. The positive effect of a change in the terms-of-trade on the trade balance – so called Harberger-Laursen-Metzler effect – is the smaller, the more persistent terms-of-trade shocks are. By capital adjustment costs, the theoretical effect may be even negative. A modest contribution of the terms-of-trade shocks to the business-cycle fluctuations in Slovakia is in line with other empirical papers around the world.

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5

Ijaz, Kiran, Muhammad Zakaria, and Bashir A. Fida. "Terms-of-Trade Volatility and Inflation in Pakistan." LAHORE JOURNAL OF ECONOMICS 19, no. 1 (January 1, 2014): 111–32. http://dx.doi.org/10.35536/lje.2014.v19.i1.a5.

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This empirical study examines the effects of terms-of-trade (TOT) volatility on inflation in Pakistan, using annual data for the period 1972 to 2012. The results show that TOT volatility has a significant negative effect on inflation in Pakistan. This result is robust to alternative equation specifications and TOT volatility measures. Output growth has a negative effect on inflation while foreign export prices have a positive effect on inflation. Both the depreciation of the nominal exchange rate and money supply increase the inflation rate. The fiscal deficit and world oil prices are also found to increase domestic inflation.

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6

Yang, Zhi Xue. "Low-Carbon Economy: Terms of Trade and Welfare Effect of China." Advanced Materials Research 113-116 (June 2010): 91–95. http://dx.doi.org/10.4028/www.scientific.net/amr.113-116.91.

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Controlling CO2 emissions without hindering economic development is a major challenge for China. Carbon barrier is a new trade barrier related with carbon trading, which will be a new tool of protectionism in foreign trade. This article expounds the relationship between international trade and economic growth by a standard trade model, analyzes the impact on trade and economic growth of carbon barrier by join a new variable in the model. We suggest that China should create a favorable international environment, draw up carbon trading policies and regulations, actively participate in international carbon trading, fight for pricing by boosting domestic carbon trading market, and take an active and effective adjustment of its industrial structure, increasing the share of service trade as well as other low-carbon forms and methods of trade to cope with the challenge.

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7

Kowalczyk, Carsten, and Raymond Riezman. "Free trade: what are the terms-of-trade effects?" Economic Theory 41, no. 1 (August 22, 2008): 147–61. http://dx.doi.org/10.1007/s00199-008-0407-z.

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8

Nepran, A., I. Rudenko, A. Kolesnyk, T. Kulynych, and O. Bogoyavlenskiy. "«TRADE TERMS» EFFECT ON THE UKRAINIAN PAYMENT BALANCE STATE." Financial and credit activity: problems of theory and practice 3, no. 34 (September 30, 2020): 343–50. http://dx.doi.org/10.18371/fcaptp.v3i34.215559.

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9

Corsetti, Giancarlo, Philippe Martin, and Paolo Pesenti. "Productivity, terms of trade and the ‘home market effect’." Journal of International Economics 73, no. 1 (September 2007): 99–127. http://dx.doi.org/10.1016/j.jinteco.2006.08.005.

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10

Jawaid, Syed Tehseen, Abdul Waheed, and Aamir Hussain Siddiqui. "Terms of trade and economic growth in developing country." Journal of Chinese Economic and Foreign Trade Studies 13, no. 1 (April 20, 2020): 1–19. http://dx.doi.org/10.1108/jcefts-07-2019-0035.

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Purpose The purpose of this study is to investigate the first time ever the effects of overall terms of trade, bilateral terms of trade and main commodity groups’ terms of trade on economic growth. Design/methodology/approach Augmented Dickey Duller and Philips Perron unit root tests and Johensan cointegration test have been applied by using annual time series data from 1974 to 2017. Dynamic ordinary least square and fully modified ordinary least square have also been used to perform sensitivity analysis. Findings The cointegration test confirm the positive long-run relationship between overall terms of trade (ToT) and economic growth. Country-wise results show that ToT with Australia, Bangladesh, Canada, Hong Kong, Japan, Kuwait, Malaysia, Singapore, Sri Lanka, UK and the USA have significant positive effect on economic growth. Conversely, ToT with China and UAE has significant negative effect on economic growth. In contrast, ToT with India, Norway, Saudi Arabia and Switzerland has insignificant effect on the economic growth of Pakistan. Product-wise results indicate that the product group namely, Chemical, Crude Material inedible except fuels, Manufactured and Minerals fuels and Lubricant found to be a significant positive effect on economic growth. However, Beverages and Tobacco, and Machinery and Transport product groups found to be significant negative impact on economic, while Food and Live animals found to be insignificant. Practical implications In general, it is suggested that the beneficial terms of trade are favorable for economic growth. The study suggested export promotion policy for which relationship between ToT and economic growth found positive and import substitution policy is suggested the products found a negative relationship between the said variables. Originality/value This paper is a pioneer attempt to investigate the effect of overall ToT, bilateral terms of trade and the main commodity group’s ToT on economic growth in Pakistan.

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11

Misztal, Piotr. "The Harber-Laursen-Metzler effect in Poland." Oeconomia Copernicana 3, no. 1 (March 31, 2012): 5–28. http://dx.doi.org/10.12775/oec.2012.001.

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The aim of the paper is to analyse of the Harberger-Laursen-Metzler effect in light of the theory and in practice, with particular reference to this effect in Poland in the period 1995-2009. The results of research carried out by means of the vector autoregression model (VAR) revealed that temporary improvement in terms of trade in Poland led to the current account improvement, and permanent improvement in terms of trade contributed to the current account deterioration. Thus it was confirmed prevalence of the Harberger-Laursen-Metzler effect in Poland. Additionally, results of investigation confirmed relatively greater impact of temporary changes in terms of trade on the current account than in the case of permanent changes in terms of trade. Analogous interdependence was revealed witch reference to explanation of the current account variability. Temporary changes in terms of trade accounted for in much more degree the current account variability in relation to permanent changes in terms of trade.

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12

Kang, Kichun. "Changes in trade variety, substitutability, and terms of trade effect: Evidence from south korea." Developing Economies 57, no. 4 (August 15, 2019): 337–61. http://dx.doi.org/10.1111/deve.12208.

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13

Mansoorian, Arman. "Income Effect, Wealth Effect, and the Terms of Trade with Finite Horizons." Canadian Journal of Economics 25, no. 2 (May 1992): 474. http://dx.doi.org/10.2307/135875.

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14

Tomic, Daniel. "Croatian Terms of Trade; Historical Perspective, Movements and Welfare Effect." Economic Research-Ekonomska Istraživanja 25, sup1 (January 2012): 117–39. http://dx.doi.org/10.1080/1331677x.2012.11517559.

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15

Jebran, Khalil, Amjad Iqbal, Kalim-Ullah Bhat, and Arshad Ali. "Effect of Terms of Trade on Economic Growth of China." Emerging Economy Studies 4, no. 2 (September 18, 2018): 157–68. http://dx.doi.org/10.1177/2394901518795068.

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This study investigates the effect of terms of trade (TOT) on the economic growth of China over the period 1980–2013. Autoregressive distributed lag (ARDL) model proposed by Pesaran, Shin, and Smith (2001, Journal of Applied Econometrics, 16(3), pp. 289–326) is applied for examining the short-run and long-run associations. The causality analysis between variables is analyzed by using Granger causality test and variance decomposition test. The ARDL model reveals that TOT significantly and adversely affect economic growth in the short run as well as in the long run. The results also imply positive short-run and long-run effect of labor and capital on the economic growth of China. The Granger causality results reveal significant bidirectional causal relationship between economic growth and capital, and between capital and labor force. The results show unidirectional causality from TOT to labor force. The variance decomposition results show that most of the innovation in economic growth is explained by its own innovation, while other variables have very small contributions to its innovations. The notable findings of the study suggest that TOT deterioration is relatively important for enhancing the economic growth of China.

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16

Hernández, Gonzalo, and María Alejandra Prieto. "Terms of trade shocks and taxation in developing countries." Cuadernos de Economía 39, no. 81 (July 1, 2020): 613–34. http://dx.doi.org/10.15446/cuad.econ.v39n81.80207.

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We find evidence suggesting that economies with a tax structure more oriented toward indirect taxes –rather than direct taxes– tend to mitigate the effect of terms of trade shocks on output fluctuations. This finding might be particularly important for lower-income countries since the negative welfare effects caused by macroeconomic volatility in the absence of consumption-smoothing mechanisms are more severe in developing economies exposed to external shocks. Additionally, some of these economies are attempting to reorient their tax structure toward more direct taxes following the standards in advanced economies.

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17

Jebran, Khalil, Amjad Iqbal, Zia Ur Rehman Rao, and Arshad Ali. "Effects of Terms of Trade on Economic Growth of Pakistan." Foreign Trade Review 53, no. 1 (August 1, 2017): 1–11. http://dx.doi.org/10.1177/0015732516663315.

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This paper analyzes the effect of terms of trade on economic growth of Pakistan considering annual time series data from 1980 to 2013. This study opted autoregressive distributed lag model for purpose of analyzing short- and long-run relationship. The results reveal significant negative long-run and short-run effects of terms of trade on economic growth. The analyses also indicate significant positive long-run and short-run effects of labour on economic growth. Further, capital stock is influencing positively the economic growth in long run only. We suggest that economic policies may be implemented to deteriorate terms of trade which will further enhance the economic growth of Pakistan. JEL: F13, F43

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18

Reinsdorf, Marshall B. "TERMS OF TRADE EFFECTS: THEORY AND MEASUREMENT." Review of Income and Wealth 56 (April 16, 2010): S177—S205. http://dx.doi.org/10.1111/j.1475-4991.2010.00384.x.

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19

Szomolányi, Karol, Martin Lukáčik, and Adriana Lukáčiková. "Impact of Terms-of-Trade on Slovakia, the Czech Republic, and Croatia in the Short Run." Naše gospodarstvo/Our economy 63, no. 1 (March 1, 2017): 3–13. http://dx.doi.org/10.1515/ngoe-2017-0001.

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AbstractThe terms-of-trade shocks are not main source of business cycles in three post-communist countries (i.e., Slovakia, the Czech Republic, and Croatia). The zero or negative reactions of the trade balance in terms-of-trade positive shocks in the countries exhibit the Obstfeld-Svensson-Razin effect, according to which the Harberger-Laursen-Metzler positive effect on terms-of-trade indicates that the smaller the trade balance, the more persistent the terms-of-trade shock is. The conclusions come from the structural vector autoregressive analysis of the cyclical components of terms-of-trade, trade balance, output, consumption, and investment in three post-communist countries.

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20

Wang, Deng-Shan, Miao Jin, and Zeng-Gang Guo. "Harberger-Laursen-Metzler Effect with Modified Becker-Mulligan Preference by Dynamic Optimization." Discrete Dynamics in Nature and Society 2016 (2016): 1–8. http://dx.doi.org/10.1155/2016/4190294.

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We investigate the effects of terms-of-trade shocks on the spending and current account where households with the modified Becker-Mulligan endogenous time preference maximize their utility over an infinite planning period. Our results show that, with the modified Becker-Mulligan preference, the effect of the deterioration in terms of trade on the current account depends on people’s characters. However, with the second preference we have considered, the deterioration in terms of trade will result in a current account deficit, which is the same as Obstfeld (1982), where households with Uzawa endogenous time preference are considered; deterioration in terms of trade leads to a decline in the current account. These theoretical results are consistent with the empirical evidence by numerical simulations.

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21

Otto, G. "Terms of trade shocks and the balance of trade: there is a Harberger-Laursen-Metzler effect." Journal of International Money and Finance 22, no. 2 (April 2003): 155–84. http://dx.doi.org/10.1016/s0261-5606(02)00075-x.

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22

Idrees, Tayyaba, and Saira Tufail. "The Harberger-Laursen-Metzler Effect: Evidence from Pakistan." LAHORE JOURNAL OF ECONOMICS 17, no. 2 (July 1, 2012): 87–110. http://dx.doi.org/10.35536/lje.2012.v17.i2.a4.

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According to the Harberger-Laursen-Metzler (HLM) effect, an exogenous temporary increase in the terms of trade leads to an improvement in the current account balance. This paper uses a recursive vector autoregression to investigate empirically the existence of the HLM effect in Pakistan, using a time series dataset for the period 1980–2009. Two important results emerge. First, real income deteriorates with an improvement in the terms of trade. Second, the current account balance also responds negatively to innovations in the terms of trade, which implies that the HLM effect does not exist in Pakistan.

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23

Colin Koh-King Wong, Venus Khim-Sen Liew, and Mohammad Affendy Arip. "The Impact Of ASEAN Free Trade Area On Intra-Asean Manufacturing Trade." International Journal of Business and Society 18, no. 3 (December 31, 2017): 633–43. http://dx.doi.org/10.33736/ijbs.3155.2017.

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This study investigates the effects of ASEAN Free Trade Area (AFTA) agreement on the bilateral manufacturing trade between the 10 member countries of ASEAN and 39 of their trading partners. The period ofstudy covers 1995 to 2014. Results obtained from panel data analysis of the gravity model with random effectsshow that the economic sizes, populations, relative endowments, common language and geographical factors like distance, island, landlocked and neighbour are significant determinants of the bilateral manufacturing trade for ASEAN member countries. Moreover, results obtained from the fixed effects model in this study suggests that AFTA has generatedpure trade creation effects in terms of exports. Ontop of that, AFTA has resulted in larger magnitude of trade creation effects in imports than import diversion effects. Overall, AFTA promotes trades among ASEAN member countries through the elimination of tariff and non-tariff barriers, for bringing aboutpure trade creation effects in terms of exports as well as imports and also trade diversion effects in terms of imports. In sum, this study with more recent data set covering more ASEAN trading partners shows empirical evidence to justify the success of AFTA arrangement.

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24

Yeh, Yeong-Her. "Tariffs, Quotas and the Terms of Trade." American Economist 36, no. 2 (October 1992): 81–84. http://dx.doi.org/10.1177/056943459203600211.

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This paper attempts to show another difference between tariffs and quotas in their economic effects. While a country's terms of trade could deteriorate after it imposes a tariff, a country's terms of trade will always improve after it imposes an import quota or an export quota. The offer curve approach is used in this study.

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25

Jain, Hansa. "Implications of SAFTA for Indian Economy: Trade, Compatibility and Welfare Effects." Foreign Trade Review 54, no. 4 (November 2019): 355–74. http://dx.doi.org/10.1177/0015732519874218.

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Among the members of South Asian Free Trade Area (SAFTA), India dominates in terms of its geographical location, land area, population size and economic share. However, SAFTA is treated as a weak agreement as India is highly outward oriented for trade. This raises a question about India’s trade compatibility with South Asian countries. Also since SAFTA is now fully implemented, there is a need to determine its welfare effects for India as well as for the region. The study focuses on (a) trends and patterns of India’s intra-regional trade with South Asian countries, (b) trade compatibility and (c) welfare effects of SAFTA for the Indian economy. India’s trade intensity, trade share and trade compatibility with the other regional members is calculated. GTAP simulations are used to determine welfare effects. The study is based upon the secondary data. The study finds that with the implementation of SAFTA, India’s trade intensity and trade share with its regional members has slightly improved. Trade compatibility though low, is gradually improving. The study considers SAFTA as a positive sum game for India. India is likely to have favourable allocative efficiency effect, terms of trade effect and investment-savings effect if trade facilitation measures are adopted. JEL Codes: F150, F10, F140, C150

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26

Uckan Dagdemir, Elif. "Effects of trade liberalization on the welfare of the agriculture sector via double factoral domestic terms of trade in Turkey: 1990-2010." Business and Economic Horizons 10, no. 2 (July 16, 2014): 138–50. http://dx.doi.org/10.15208/beh.2014.12.

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27

Anderson, James E., and Yoto V. Yotov. "Terms of trade and global efficiency effects of free trade agreements, 1990–2002." Journal of International Economics 99 (March 2016): 279–98. http://dx.doi.org/10.1016/j.jinteco.2015.10.006.

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28

Caldentey, Esteban Pérez, and Juan Carlos Moreno-Brid. "Thirlwall's law and the terms of trade: a parsimonious extension of the balance-of-payments-constrained growth model." Review of Keynesian Economics 7, no. 4 (October 2019): 463–85. http://dx.doi.org/10.4337/roke.2019.04.04.

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This paper extends the balance-of-payments-constrained (BoPC) growth model and Thirlwall's law to include the terms of trade with and without capital flows. Without capital flows a positive (negative) change in the terms of trade by improving (worsening) export performance can ceteris paribus augment (reduce) the rate of growth of an economy compatible with balance of payments’ long-run equilibrium. With the inclusion of capital flows the BoPC dynamics become more complex. Assuming no changes in the real exchange rate and in the import elasticity of demand, an improvement in the terms of trade can increase the level of the external deficit compatible with BoPC growth. This results from the terms-of-trade effects on the purchasing of exports and on foreign-capital inflows. The positive effect of an improvement in the terms of trade may be partially offset by an appreciation of the real exchange rate and an increase in the import elasticity of demand, when the model is extended to allow for such interactions in the analysis.

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29

Ludema, Rodney D., and Anna Maria Mayda. "Do terms-of-trade effects matter for trade agreements? Theory and evidence from WTO Countries*." Quarterly Journal of Economics 128, no. 4 (September 6, 2013): 1837–93. http://dx.doi.org/10.1093/qje/qjt016.

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Abstract International trade agreements are an important element of the world economic system, but questions remain as to their purpose. The terms-of-trade hypothesis posits that countries use tariffs in part to improve their terms of trade and that trade agreements cause them to internalize the costs that such terms-of-trade shifts impose on other countries. This article investigates whether the most-favored-nation (MFN) tariffs set by World Trade Organization (WTO) members in the Uruguay Round are consistent with the terms-of-trade hypothesis. We present a model of multilateral trade negotiations featuring endogenous participation that leads the resulting tariff schedules to display terms-of-trade effects. Specifically, the model predicts that the level of the importer’s tariff resulting from negotiations should be negatively related to the product of two terms: exporter concentration, as measured by the Herfindahl-Hirschman index (sum of squared export shares), and the importer’s market power, as measured by the inverse elasticity of export supply, on a product-by-product basis. We test this hypothesis using data on tariffs, trade, and production across more than 30 WTO countries and find strong support. We estimate that the internalization of terms of trade effects through WTO negotiations has lowered the average tariff of these countries by 22% to 27% compared to its noncooperative level.

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30

Fujiwara, Ippei, and Naohisa Hirakata. "Dynamic Aspects of Productivity Spillovers, Terms of Trade, and the “Home Market Effect”." IMF Staff Papers 56, no. 4 (November 2009): 958–69. http://dx.doi.org/10.1057/imfsp.2009.30.

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31

Urban, Dieter M. "Terms of trade, catch-up, and home-market effect: The example of Japan." Journal of the Japanese and International Economies 21, no. 4 (December 2007): 470–88. http://dx.doi.org/10.1016/j.jjie.2007.07.002.

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32

Bouakez, Hafedh, and Takashi Kano. "Terms of trade and current account fluctuations: The Harberger–Laursen–Metzler effect revisited." Journal of Macroeconomics 30, no. 1 (March 2008): 260–81. http://dx.doi.org/10.1016/j.jmacro.2006.12.003.

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33

Khorana, Sangeeta, and Badri G. Narayanan. "Modelling Effects of Tariff Liberalisation on India’s Key Export Sectors: Analysis of the EU–India Free Trade Agreement." Margin: The Journal of Applied Economic Research 11, no. 1 (February 2017): 1–22. http://dx.doi.org/10.1177/0973801016676016.

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Trade agreements are increasingly being negotiated between developed and emerging economy partners. An example is the EU–India Free Trade Agreement (FTA) for which negotiations began in 2007. There has been a debate on the potential effects of the proposed FTA and how this can impact on India’s key export sectors. Our study addresses this aspect from a global computable general equilibrium (CGE) modelling perspective. Using the Global Trade Analysis Project (GTAP) framework, we analyse trade and welfare impacts of the proposed FTA between the EU and India. Two scenarios are modelled: first, complete and immediate elimination of tariff on all goods traded and second, selective tariff elimination on textiles, wearing apparel and leather goods—products in which India has a comparative advantage. Results under both scenarios show that India enjoys positive welfare effects though there is a possibility of trade diversion. Under scenario 1, India loses due to a negative terms of trade (ToT) effect. Under scenario 2, with selective sectoral liberalisation, gains are mainly concentrated in the textiles, wearing apparel and leather sectors. There is a positive output effect from change in demand for factors of production, suggesting that the proposed FTA could lead to relocation of labour-intensive production to India. JEL Classification: F15, F47, F62

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34

Jošić, Hrvoje, and Maja Bašić. "Trade creation and trade diversion effects from Croatia’s CEFTA and EU membership." Ekonomski pregled 72, no. 4 (2021): 489–521. http://dx.doi.org/10.32910/ep.72.4.1.

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This paper provides a detailed empirical study of trade creation and trade diversion effects arising from Croatia's two regional trade agreements, the Central European Free Trade Agreement (CEFTA) and the European Union (the EU). It offers a foundation for discussion about future trade policies in terms of benefits and drawbacks from those regional trade agreements. Croatia’s imports, exports and total trade flows with 180 trading partner countries were examined for the period of 2000 – 2016. Cross-country panel regression using gravity model of international trade assessed pooled OLS, fixed and random effects, as well as more robust Tobit and PPML estimator models. The random effects model found positive effects of Croatia-CEFTA integration evident in trade creation in imports, exports and total trade flows. Croatia-EU integration exhibits no significant effect of trade creation in neither imports, exports nor total trade flows. Nonetheless, there is a trade diversion effect in cases of imports and total trade flows. In the Tobit model CEFTA created trade in imports, exports and total trade flows, while the EU diverted trade in imports and total trade flows. Finally, the robust PPML estimator found that: (1) CEFTA membership created trade in imports, exports and total trade flows, and (2) the EU membership diverted trade in imports and exports, and created trade in total trade flows.

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35

Oblath, Gabor, and David Tarr. "The terms-of-trade effects from the elimination of state trading in Soviet-Hungarian trade." Journal of Comparative Economics 16, no. 1 (March 1992): 75–93. http://dx.doi.org/10.1016/0147-5967(92)90117-p.

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36

Kim, Yoonbai. "The income and terms of trade effects: a permanent versus transitory decomposition in US trade." Journal of International Money and Finance 13, no. 6 (December 1994): 658–78. http://dx.doi.org/10.1016/0261-5606(94)90037-x.

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37

Servén, Luis. "Terms-of-trade shocks and optimal investment: another look at the Laursen-Metzler effect." Journal of International Money and Finance 18, no. 3 (January 1999): 337–65. http://dx.doi.org/10.1016/s0261-5606(99)85001-3.

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38

Wei, Wei, and Yong-Jae Choi. "The Effects of Terms of Trade on GDP and Inflation." Journal of Korea Research Association of International Commerce 17, no. 6 (December 31, 2017): 41–58. http://dx.doi.org/10.29331/jkraic.2017.12.17.6.41.

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39

Fox, Kevin J., and Ulrich Kohli. "GDP growth, terms-of-trade effects, and total factor productivity." Journal of International Trade & Economic Development 7, no. 1 (March 1998): 87–110. http://dx.doi.org/10.1080/09638199800000006.

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40

Peletier, Ben D. "Terms of trade effects on endogenous growth rates in LDCs." Oxford Development Studies 26, no. 3 (October 1998): 351–73. http://dx.doi.org/10.1080/13600819808424161.

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41

swanepoel, jan a. "ADJUSTING SOUTH AFRICA'S FISCAL BALANCE FOR TERMS-OF-TRADE EFFECTS." South African Journal of Economics 75, no. 4 (December 2007): 719–27. http://dx.doi.org/10.1111/j.1813-6982.2007.00142.x.

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42

Jawaid, Syed Tehseen, and Syed Ali Raza. "Effects of terms of trade on growth performance of India." Economic Modelling 33 (July 2013): 940–46. http://dx.doi.org/10.1016/j.econmod.2013.04.043.

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Shareef, Fareed, Imran Sharif Chaudhary, Toseef Azid, and Muhammad Raza Zafar. "Does Trade Openness Transfer Pollution across Borders: An Experience of Pakistan." Review of Economics and Development Studies 6, no. 2 (July 28, 2020): 547–60. http://dx.doi.org/10.47067/reads.v6i2.222.

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The study aims to empirically explore the link between trade openness and emission level in Pakistan by using Johansson co integration technique during the period from1972 to 2019. The empirical strategy of the study progressively incorporates models from zero interaction terms to complete interaction terms for analyzing the relationship between trade openness and emission level in the presence of scale, composition and technique effect. The variable of the trade openness appeared in all the models with negative sign except in scale effect model. It means technique effect outweighs the composition and scale effect in Pakistan which ultimately makes decreasing impact of trade on pollution. The scale effect results in higher emissions in Pakistan. Similarly, composition effect also bears positive sign showing that higher capital labor ratio in Pakistan will increase pollution because capital goods are said to be pollution intensive goods.

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Strojny, Jacek. "Ocena efektu Harbergera-Laursena-Metzlera w polskim sektorze rolno-żywnościowym." Roczniki Naukowe Ekonomii Rolnictwa i Rozwoju Obszarów Wiejskich 106, no. 1 (June 27, 2019): 36–50. http://dx.doi.org/10.22630/rnr.2019.106.1.3.

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The aim of the study was to asses the Harberger-Laursen-Metzler effect in Polish agro-food sector. The analysis covers period of 2002-2017. There was applied the vector autoregression (VAR) methodology. The outcome of the research revealed that permanent deterioration in terms of trade contributed to the current account of Polish agribusiness sector improvement. The temporary effect of terms of trade shocks was not indentified. Additionally, the research enabled recognition of gross value added (GVA) as the most exogenous factor of the VAR system. On the other hand most endogenous factor of the model is the current account. The variable permanent terms of trade is more exogenous factor than the current account.

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Wang, Deng-Shan, and Miao Jin. "Nonexistence of Harberger-Laursen-Metzler Effect with Endogenous Time Preference in an Imperfect Capital Market." Economics Research International 2015 (July 15, 2015): 1–10. http://dx.doi.org/10.1155/2015/836045.

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This paper investigates the spending and current-account effects of a permanent terms-of-trade change in a dynamic small open economy facing an imperfect world capital market, where the households’ subjective discount rate is a function of savings. Under the assumption that the bond holdings are measured in terms of home goods, it is shown that when the discount rate is a decreasing function of savings, there does not necessarily exist a stable state; however, when the discount rate is an increasing function of savings, a saddle-path stable steady state comes into existence and the Harberger-Laursen-Metzler effect does not exist unambiguously; that is, an unanticipated permanent terms-of-trade deterioration leads to a cut in aggregate expenditure and a current-account surplus. The short-run effects obtained by the technique by Judd (1985, 1987) and Zou (1997) are consistent with the results from the long-run analysis and diagrammatic analysis.

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Chen, Fuzhong, Guohai Jiang, and Getachew Magnar Kitila. "Trade Openness and CO2 Emissions: The Heterogeneous and Mediating Effects for the Belt and Road Countries." Sustainability 13, no. 4 (February 11, 2021): 1958. http://dx.doi.org/10.3390/su13041958.

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To investigate whether increasing trade openness results in more severe environmental problems, this study investigates the impact of trade openness on carbon dioxide (CO2) emissions using panel data from 64 countries along the Belt and Road from 2001–2019. Fully considering the potential heterogeneity, the panel quantile regression approach is utilized. Moreover, this study explores the three major mediating effects of the process, namely the energy-substitution effect, economic effect, and technology effect. The empirical results indicate that the improvement in trade openness has a significantly positive effect on CO2 emissions, and it also shows that the impact varies with different levels of CO2 emissions. Furthermore, the indirect effect of trade openness on CO2 emissions via the economic effect is positive, while the indirect effect via the energy-substitution and the technology effect is negative. Therefore, it is necessary to improve renewable energy consumption, decrease energy intensity, and formulate related policies to reduce carbon emissions policies in terms of local conditions.

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Kang, Kichun. "The adjustment effect of the extensive margin on the terms of trade during economic crises." Economics Letters 176 (March 2019): 5–8. http://dx.doi.org/10.1016/j.econlet.2018.11.026.

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Fluckiger, Y. "The effect of a unilateral transfer between customs union partners on the terms of trade." Economics Letters 22, no. 2-3 (January 1986): 289–93. http://dx.doi.org/10.1016/0165-1765(86)90249-1.

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Salvatore, Dominick. "Economic Effects of NAFTA on Mexico." Global Economy Journal 7, no. 1 (January 2007): 1850104. http://dx.doi.org/10.2202/1524-5861.1244.

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The economic effects of NAFTA on Mexico have been discussed and measured mostly in terms of its effect on employment on both sides of the border and by the increase in Mexico-US trade and investments before and after NAFTA. These are the wrong ways to measure the effects of a free trade area on a member state. In this paper, I will first discuss the theoretically correct method of evaluating the economic effects of the formation of a free trade area in general and then apply this method to correctly measure the effects of NAFTA on Mexico.

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Rivera-Batiz, Francisco L. "Foreign ownership, non-traded goods and the effects of terms of trade changes on national welfare." Economics Letters 20, no. 4 (January 1986): 367–71. http://dx.doi.org/10.1016/0165-1765(86)90015-7.

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