A History of Economic Theorizing on the Prebisch-Singer Thesis

This paper, in its second part, adds the lacking theoretical underpinnings to the literature on exports and growth. It attempts to demonstrate why most of the theoretical analyses of the terms of trade phenomenon has been inadequate from the development point of view. It then presents in its third part, an open Solow type model in which the arguments of Prebisch and Singer, income and price elasticities of export demand, are indeed the reason for lower growth rates in comparison to those of the closed Solow model. Part IV draws some conclusions with respect to policies and research requirements