To undertake the study of the terms of trade deterioration a north and south model hasrnbeen used .in the north model, the export price of manufactured commodities has beenrnformulated and estimated using time series econometrics. In the south model, the exportrnprice of the primary commodities have been taken in to consideration and estimated usingrnthe same techniques. Concerning the income convergence sub section, lime seriesrneconometrics method is used to estimate the absolute income convergence while .systemrnGMMI is used to estimable the conditional income convergence.rnrnFrom the econometric results, the supply side f actors (which are included in the economyrnof each region) affect the long run prices in both regions. The income in the south alsornpositively affects the export price of manufactured goods. Here the import-compressedrneconomies' can agitate the problem of terms of trade deterioration. The income of thernnorth positively affects the price of all primary products but remain insignificant forrnbeverage and agricultural products. The interest rate is a significant variable, whichrnaffects the short run price of beverages and agricultural raw materials but insignificantrnaffects the price of ail primary commodities except oil.rnrnWhen we come to the income convergence sub section the sub Saharan Africa countriesrnare diverging From the average per capital income of developed countries (absoluternincome convergence). But they are converging to different per capital level (conditionalrnincome convergence). In the growth regression saving, export share and previous yearrninvestment positively affects the growth rate in SSA while Population growth, inflation andrnM/GDP negatively affects the growth rate in This region Openness, illiteracy rate andrnforeign direct investment remained poor to affect the growth rate of SSA.