Sarkar-Singer HypothesisIntroductionSince the terms-of-trade deterioration hypothesis was proposed by Prebisch and Singer in 1950, comparative advantage has been questioned. Due to the structure of exports of developing countries (DCs) dominated by primary products and the structure of exports of industrialized countries (IC) dominated by manufactured products; they compared developing country exports of primary products and developing country exports of manufactured goods and indicated that the terms of trade tended to deteriorate over time. This hypothesis is supported by numerous studies, such as Grilli and Yang (1998) and Spraos (1980); the growing gap therefore appears to exist. This hypothesis confronts the traditional view that international trade and specialization may not be any better off. The Prebisch-Singer hypothesis also has an impact on the trade policy of the majority of developing countries, which pushes them to turn inward. However, many studies claim that the flawed Prebisch-Singer hypothesis is Sarkar and Singer's analysis which has the greatest appeal. Due to Singer's (1958) view that the export structure of developing countries was dominated by primary products; structure of CI exports by manufactured products. Therefore, early studies use the terms of trade between primary and manufactured goods as a proxy. Sarkar (1986) expresses that the growth of manufactured sectors, however, Singer (1987) proposes that even the change in the composition of commodity exports, the disadvantages In developing countries, the deterioration will be continuous. Sarkar and Singer (1991) focus on this topic and examine the impact of the change in the composition of developing countries' commodity exports. They proposed that changes in the composition of commodity exports are the important factor, as the primary sectors of developing countries have a lower rate...... middle of article...... ent, Vol. 19, No. 4, pages 333-340Singer, HW (1950) The distribution of gains between investing and borrowing countries, American Economic Review, Vol. 40, No. 2, pp. 473-485Singer, HW (1958) Commentary, Review of Economics and Statistics, Vol. 40, pages 87-88 Singer, HW (1987) Terms of trade in John Eatwell, Murray Milgate and Peter Newman (Eds), The New Palgrave: A Dictionary of Economics, London: Macmillan, pages 626-628 Singer HW (1998) The Terms of Commerce fifty years later – Convergence and divergence, The South Letter (30)Sproas, J. (1980) The statistical debate on the terms of net barter trade between primary and manufactured goods, Economic Journal , Flight. 90, pages 107-128United Nations Conference on Trade and Development (2005) Trade and Development Report Chapter III: Changing terms of trade and its impact on developing countries