 Uneven Development and the Destabilisation of the North: A Keynesian viewJames K. Galbraith Chapter 8 in The Relevance of Keynesian Economic Policies Today, 1997, pp 136-153 from Palgrave Macmillan Abstract: Abstract The work of Hymer (1972) and Emmanuel (1972) inspired the literature on uneven development, unequal exchange, the transnational corporation and North-South trade in general. But most of the literature is devoted to the consequences of such phenomena for developing countries, and is couched in the distinctive idioms of dependency theory. Our insular Northern economics has scarcely been touched by these ideas.1 Explorations of faltering performance in the developed countries continue along lines unrelated to North-South trade, and efforts to establish linkages have been hotly disputed. To take two early examples, Krugman (1986) emphasised the role of dynamic scale economies in inducing hysteresis in the US trade balance, while Baldwin (1988) modelled the effects of sunk costs of entry in generating hysteresis in import prices. Both models are aimed at trade in general and can be applied to model economies on the same technological and income levels. Neither is geared to the special conditions of the North-South relationship. Keywords: Business Cycle; Wage Rate; Consumer Good; Capital Good; Full Employment (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-25425-5_8 Ordering information: This item can be ordered from DOI: 10.1007/978-1-349-25425-5_8 Access Statistics for this chapter More chapters in Palgrave Macmillan Books from Palgrave Macmillan |
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