Arbeitspapier

Avoiding and Escaping the 'Commodity Trap' in Development

Based on the 'Prebisch–Singer' hypothesis, a strand of literature has emerged that focuses on the phenomenon of commoditisation and 'commodity traps' in development. Following Kaplinsky (2006), we revisit the hypothesis on a country's terms of trade in manufacturing exports and imports. Offering high-quality products and targeting 'niche' markets in high-income countries are beneficial strategies for developing countries to improve their terms of trade and to escape a potential 'commodity trap'. Barriers to entry via standards in the importing countries might even support such strategies. Non-tariff measures (NTMs) such as technical barriers to trade (TBTs) and sanitary and phytosanitary measures (SPS) are usually implemented to increase the quality of products, the production procedure or environmental and animal health in the importing countries. Based on a gravity framework controlling for multilateral resistance over the period 1998-2014, it is shown that compliance with these measures reduces the negative impact of commoditisation on their terms of trade.

Sprache
Englisch

Erschienen in
Series: wiiw Working Paper ; No. 153

Klassifikation
Wirtschaft
Empirical Studies of Trade
Trade Policy; International Trade Organizations
Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models
Thema
terms of trade
product quality
commodity trap
commoditisation
non-tariff measures
technical barriers to trade
sanitary and phytosanitary measures

Ereignis
Geistige Schöpfung
(wer)
Ghodsi, Mahdi
Stehrer, Robert
Ereignis
Veröffentlichung
(wer)
The Vienna Institute for International Economic Studies (wiiw)
(wo)
Vienna
(wann)
2018

Handle
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Ghodsi, Mahdi
  • Stehrer, Robert
  • The Vienna Institute for International Economic Studies (wiiw)

Entstanden

  • 2018

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