They argue that aggregation could not allow us to observe all the fluctuations observed in bilateral trade flow variables because of the smoothing-out effects as a country's terms of trade
or trade balance could be weakening with one trading partner but becoming stronger with another.
Recent trends in world commodity markets, however, have further strengthened prospects for Australia's terms of trade
,'' Stevens said in a statement.
Clarke continues 'but the effects of immigration in worsening current account deficits and thereby driving unfavourable terms of trade
effects seems to be a part of the Giesecke explanation'.
The terms of trade
, or the ratio between prices of exports and prices of imports, have shown a deteriorating trend since the early 1990's.
This is just the joint result of the Rybczynski theorem and the Stolper-Samuelson theorem linked by the endogenous terms of trade
, which explains the simultaneous effects of changes of quantities of factor endowments both on the changes of output and on the changes of price.
Pavlova and Rigobon examine the co-movement among stock market prices and the terms of trade
within a three-country, Center-Periphery dynamic equilibrium model in which agents in the Center country face portfolio constraints.
The Finnish National Board of Customs (NBC) reportedly said on Monday (29 November) that the Finnish terms of trade
had weakened by 3.0% in August 2004, as compared to August 2003.
Certainly, Australia's terms of trade
stopped declining in the mid 1990s and have been rising since 2000.
The shift in terms of trade
between the price of wheat, a surrogate for grain prices, and that of oil is both dramatic and ongoing.
Consumption and welfare in the other bloc rise about 1 1/4 percent because of an improvement in the terms of trade
with the euro area.
First, the model should incorporate terms of trade
shocks because a major component of GDP is concentrated in one sector.
But with such large price falls on agricultural products, this means that farmers' profit margins (terms of trade
) have diminished overall.