The concept of double factoral terms of trade, formulated by Jacob Viner takes into account the change in factor productivity both in the domestic export industries and export industries of the foreign countries. This concept can be expressed as: TD = TC . (ZX/ZM) Here TD is the double factoral terms of trade, TC is the commodity terms of trade, [...]
The secular deterioration in the terms of trade of the developing countries has occurred on account of the following reasons: 1. Absence of Qualitative Improvement of Products 2. Distribution of Gains from Technical Progress 3. Immiserizing Growth 4. Low Income Elasticity of Demand 5. Impact of Import on the Import- Competing Industries 6. Large Surpluses of Farm Products and a [...]
The concept of income terms of trade was developed by G.S. Dorrance and H. Staehle. This concept is an improvement upon the net barter terms of trade. It takes into account the indices of export and import prices and quantity index of exports. The income terms of trade are determined by the product of net barter terms of trade and [...]