Editing Prebisch–Singer hypothesis (section)

{{short description|Economic hypothesis}}
{{Imperialism Studies sidebar|expanded=Related}}
In [[economics]], the '''Prebisch–Singer hypothesis''' (also called the '''Prebisch–Singer thesis''') argues that the price of [[primary sector of industry|primary]] [[commodity|commodities]] declines relative to the price of [[manufactured good]]s over the long term, which causes the [[terms of trade]] of primary-product-based economies to deteriorate. {{As of|2013}}, recent statistical studies have given support for the idea.<ref name=":0">{{cite web |url = https://www.imf.org/external/pubs/ft/wp/2013/wp13180.pdf|title = Testing the Prebisch-Singer hypothesis since 1650: evidence from panel techniques that allow for multiple breaks|publisher = [[International Monetary Fund]]|date = August 2013|accessdate = 30 October 2014|author1=Rabah Arezki |author2=Kaddour Hadri |author3=Prakash Loungani |author4=Yao Rao }}
</ref><ref name=":1">{{cite journal |url = http://www.mitpressjournals.org/doi/abs/10.1162/rest.2010.12184|title = The Prebisch–Singer hypothesis: four centuries of evidence|journal = [[The Review of Economics and Statistics]]|date = April 2010|accessdate = 30 October 2014|author1=David I. Harvey |author2=Neil M. Kellard |author3=Jakob B. Madsen |author4=Mark E. Wohar |volume = 92|issue = 2|pages = 367–377|doi = 10.1162/rest.2010.12184|s2cid = 57569448|url-access = subscription}}
</ref> The idea was developed by [[Raúl Prebisch]] and [[Hans Singer]] in the late 1940s; since that time, it has served as a major pillar of [[dependency theory]] and policies such as [[import substitution industrialization]] (ISI).