Sarkar-Singer HypothesisIntroductionSince the terms of trade deterioration hypothesis was proposed by Prebisch and Singer in 1950, comparative advantage was questioned. Due to the export structure of developing countries (PV) dominated by primary products and the export structure of industrialized countries (IC) dominated by manufacturing products; compared the export of primary products of DC and the export of manufactured products of IC and indicated that the terms of trade tend to deteriorate over time. This hypothesis is supported by numerous studies, including Grilli and Yang (1998) and Spraos (1980); hence the growing gap as it existed. This hypothesis compares with the traditional view, international trade and specialization may not be better. The Prebisch-Singer hypothesis also affects the trade policy of most developing countries, pushing it inward. However, many studies appeal to the fact that the important attraction is the flaw of the Prebisch-Singer hypothesis and the Sarkar and Singer analysis. Due to Singer's (1958) view that the export structure of developing countries was dominated by primary products; IC export structure for manufactured products. Therefore, early studies use the terms of trade between primary products and manufactured goods as a proxy. Sarkar (1986) states that the growth of manufacturing sectors, however, Singer (1987) proposes that the change in the commodity composition of exports, disadvantages in developing countries deterioration is also continuous. Sarkar and Singer (1991) focus on this topic, examining the impact of changes in the commodity composition of developing countries' exports. They proposed that changes in the commodity composition of exports are the important factor, as developing countries' primary sectors have a lower rate... mid-paper...ent, vol. 19, no. 4, pages 333-340 Singer, H.W. (1950) The distribution of earnings between investing and borrowing countries, American Economic Review, vol. 40, no. 2, pages 473-485 Singer, H.W. (1958) Commentary, Review of Economics and Statistics, vol. 40, Page87-88Singer, HW (1987) Business Terms in John Eatwell, Murray Milgate and Peter Newman (eds.), The New Palgrave: A Dictionary of Economics, London: Macmillan, Page 626-628Singer HW (1998) The Terms of Commerce fifty years later – Convergence and divergence, The Southern Letter (30) Sproas, J. (1980) The statistical debate on the network Conditions of exchange of barter between primary raw materials and manufactured goods, Economic Journal, vol. 90, pages 107-128United Nations Conference on Trade and Development (2005) Trade and Development Report Chapter III: Evolution of terms of trade and its impact on developing countries