NBER WORKING PAPER SERIES DETERIORATION OF THE TERMS OF TRADE AND CAPITAL ACCUMULATION: A REEXAMINATION OF THE LAURSEN-METZLER EFFECT Partha Sen Stephen J. Turnovsky Working Paper No, 2616 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts Avenue Cambridge, MA 02138 June 1988 This research is part of NBER's program in International Studies, Any opinions expresssed are those of the authors and not those of the National Bureau of Economic Research,