The debate about the Prebisch-Singer thesis has focussed on primary
commodities with some extensions to manufactures. As we think that the
link between the terms of trade and longrun development, growth and
convergence is the ability of exports to enhance investment through
importing capital goods we analyse trends in country terms-of-trade. We
use two data sets. We find that for the poor countries the terms of
trade of goods and services are falling at a rate that is less negative
than for net-barter terms of trade and those found earlier for primary
Key words: Prebisch-Singer thesis; country terms-of-trade; long-run development.
JEL codes: B23; F43; O19.
UNU-MERIT Working Papers ISSN 1871-9872