This article builds on Marx's insights on foreign trade to estimate the influence of the terms of trade, through the output-capital ratio, on the average rate of profit in Brazil, Argentina, Colombia, and Chile from 1962 to 2019. For those economies, this article also explores the long-term...

This present study examines how commodity terms of trade (CTOT) influence economic performance in the proposed West African Monetary Zone (WAMZ) or non-UEMOA countries using data from 2000 to 2021. To make the assessment, PVAR, Granger causality and impulse-response functions analyses are...

This paper studies heterogeneous firm responses to a sudden trade-induced profitability shock -- the 2015 Swiss franc appreciation. Using firm-level investment data and a novel measure of exposure, we document that this trade shock causes large and persistent investment declines among affected...

This paper explores the intricate relationship between profit rates, exchange rates, and terms of trade in the Brazilian economy from 2000 to 2023. Building on Weisskopf's (1979) decomposition of the profit rate, we demonstrate how exchange rates and terms of trade affect profit share, the...

This paper studies heterogeneous firm responses to a sudden trade-induced profitability shock - the 2015 Swiss franc appreciation. Using firm-level investment data and a novel measure of exposure, we document that this trade shock causes large and persistent investment declines among affected...

This paper studies heterogeneous firm responses to a sudden trade-induced profitability shock - the 2015 Swiss franc appreciation. Using firm-level investment data and a novel measure of exposure, we document that this trade shock causes large and persistent investment declines among affected...

This paper studies the drivers of the US real exchange rate (RER), with a particular focus on its comovement with net trade (NT) flows. We consider the entire spectrum of frequencies, as the low-frequency variation accounts for 62 and 64 percent of the unconditional variance of the RER and NT,...

I examine the effect of exogenous terms of trade shocks on an exchange rate by turning to New Zealand's dairy auctions. Dairy is New Zealand's largest export category, making up almost 20 percent of exports. Specifically, whole milk powder accounts for 6 to 11 percent of total exports, and its...

We study the effect of warehouse receipt financing on terms of trade for farmers. With limited access to credit and storage facilities, farmers are compelled to sell their produce immediately after harvest at unfavourable prices. Warehouse receipt systems allow farmers to obtain loans with the...

Im Gefolge der Preisrückgänge für importierte Rohstoffe hat Deutschland im vergangenen Jahr erhebliche Realeinkommensgewinne eingefahren. Vom preisbereinigten Bruttoinlandsprodukt (BIP), das zeitgleich leicht gesunken ist, wird dieser Kaufkraftzuwachs nicht abgebildet. Einen umfassenderen...

Extensive economic literature has covered the effect of a natural resource boom on the performance of the manufacturing sector. Specifically, the Dutch Disease hypothesis establishes that increases in commodity prices should lead to a decrease in manufacturing exports, due to significant inflows...

Some countries have voiced unease about differences between their own tariff rates and those of major trading partners, calling for more "reciprocity". These calls raise the question how large the negative spillover effects of countries' tariffs on others have become over time. Given a presumed...

Purpose - Utilizing the Marxist theory of unequal exchange to explain the terms of trade between nations, this paper elucidates one possible mechanism that gives rise to ecologically unequal exchange between developed and developing economies. Design/methodology/approach - We propose a...

Economic theory suggests that countries' tariff commitments in trade agreements reflect their import market power at the time of negotiations. However, as countries grow, their market power in different sectors can change in unforeseen ways and their commitments may no longer reflect changed...

This article discusses three interrelated aspects of Indian economy namely Indian agriculture, terms of trade and WTO’s role in Indian agriculture. International agricultural trade has been described as inexplicable, exasperating, and the most distorted segment of the global economy....