Question

Prebisch-Singer theorem based on export pessimism argued forcibly that the developing countries should embark on a strategy of substituting imports by domestic production of those goods

Answer 1

Answer:

In economics, the Prebisch–Singer hypothesis (also called the Prebisch–Singer thesis) argues that the price of primary commodities declines relative to the price of manufactured goods 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.[1][2] 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