The long-run behaviour of the terms of trade between primary commodities and manufactures: A panel data approach

Ana María Iregui, Jesús Otero

Resultado de la investigación: Contribución a RevistaArtículo

3 Citas (Scopus)

Resumen

This paper examines the Prebisch and Singer hypothesis using a panel of twenty-four commodity prices from 1900 to 2010. The modelling approach stems from the need to meet two key concerns: (i) the presence of cross-sectional dependence among commodity prices; and (ii) the identification of potential structural breaks. To address these concerns, the Hadri and Rao (Oxf Bull Econ Stat 70:245-269, 2008) test is employed. The findings suggest that all commodity prices exhibit a structural break whose location differs across series, and that support for the Prebisch and Singer hypothesis is mixed. Once the breaks are removed from the underlying series, the persistence of commodity price shocks is shorter than that obtained in other studies using alternative methodologies. © 2013 ISEG.
Idioma originalEnglish (US)
Páginas (desde-hasta)35-56
Número de páginas22
PublicaciónPortuguese Economic Journal
DOI
EstadoPublished - ene 17 2013

Huella dactilar

Terms of trade
Panel data
Commodity prices
Primary commodities
Structural breaks
Cross-sectional dependence
Methodology
Persistence
Modeling

Citar esto

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The long-run behaviour of the terms of trade between primary commodities and manufactures: A panel data approach. / Iregui, Ana María; Otero, Jesús.

En: Portuguese Economic Journal, 17.01.2013, p. 35-56.

Resultado de la investigación: Contribución a RevistaArtículo

TY - JOUR

T1 - The long-run behaviour of the terms of trade between primary commodities and manufactures: A panel data approach

AU - Iregui, Ana María

AU - Otero, Jesús

PY - 2013/1/17

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N2 - This paper examines the Prebisch and Singer hypothesis using a panel of twenty-four commodity prices from 1900 to 2010. The modelling approach stems from the need to meet two key concerns: (i) the presence of cross-sectional dependence among commodity prices; and (ii) the identification of potential structural breaks. To address these concerns, the Hadri and Rao (Oxf Bull Econ Stat 70:245-269, 2008) test is employed. The findings suggest that all commodity prices exhibit a structural break whose location differs across series, and that support for the Prebisch and Singer hypothesis is mixed. Once the breaks are removed from the underlying series, the persistence of commodity price shocks is shorter than that obtained in other studies using alternative methodologies. © 2013 ISEG.

AB - This paper examines the Prebisch and Singer hypothesis using a panel of twenty-four commodity prices from 1900 to 2010. The modelling approach stems from the need to meet two key concerns: (i) the presence of cross-sectional dependence among commodity prices; and (ii) the identification of potential structural breaks. To address these concerns, the Hadri and Rao (Oxf Bull Econ Stat 70:245-269, 2008) test is employed. The findings suggest that all commodity prices exhibit a structural break whose location differs across series, and that support for the Prebisch and Singer hypothesis is mixed. Once the breaks are removed from the underlying series, the persistence of commodity price shocks is shorter than that obtained in other studies using alternative methodologies. © 2013 ISEG.

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