Growth, trade and uneven development

William Darity and Lewis S. Davis

Cambridge Journal of Economics, 2005, vol. 29, issue 1, 141-170

Abstract: Theories of growth and international trade are reviewed critically from the perspective of understanding persistent inter-country and inter-regional income inequality. Three separate literatures are considered for the insights they offer about international disparity: Classical political economy, the North--South trade models, and the 'new' growth and trade theories that incorporate increasing returns and/or product differentiation. Classical antecedents of the more recent theories are identified, and contrasts are drawn between structuralist and neoclassical approaches to explaining the income gap between rich and poor nations. Copyright 2005, Oxford University Press.

Date: 2005
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