An Austrian critique of the Prebisch-singer theory of the deterioration in the terms of trade Available to Purchase

This study aims to offer a critique of the theory of the deterioration in terms of trade, developed by Raúl Prebisch and Hans Singer.

As an example of the theory’s shortcomings, the case of Argentina’s import substitution model is analyzed.

This study demonstrates how a misunderstanding of the influence of price variability in international trade may lead to the mistaken conclusion that protectionist measures must be enforced to achieve growth and prosperity.

This is the first study that criticizes the Prebisch-Singer theory of the deterioration in the terms of trade from an Austrian economics.