The Commodity Market and Terms of Trade: Focus on Africa

Abstract

The commodity market plays a critical role in global trade and economic development. This thesis aims to provide an overview of the commodity market in general and then focuses on the African commodity market. Through a comprehensive analysis of primary and secondary data sources, this thesis examines the structure of the African commodity market and the factors which influence commodity prices and trade patterns. In particular, it first explores the implications of commodity exports on the economy of Africa, and then the ones of a particular African State, concentrating on its terms of trade. By conducting an empirical analysis, this thesis provides insights into the impact of commodity prices on economic growth, inflation, and other macroeconomic indicators.