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Commodity Chains, Unequal Exchange and Uneven Development

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Author Info
Cem Somel () (Department of Economics, METU)
Abstract

Research shows an uneven partition of value added along commodity chains between transnational firms and producers in developing countries. This paper briefly discusses how such a distribution occurs and how it leads to unequal exchange in trade. A North-South trade model reveals the uneven development consequences of this exchange. The terms of trade between North and South help maintain a gap in capital accumulation between the two regions. The model reveals that capital flows covering the trade deficit of the South with the North may help stimulate the unrequited transfer of real resources from South to North.

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File URL: http://www.erc.metu.edu.tr/menu/series04/0411.pdf
File Format: application/pdf
File Function: First version, 2004
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Publisher Info
Paper provided by ERC - Economic Research Center, Middle East Technical University in its series ERC Working Papers with number 0411.

Download reference. The following formats are available: HTML, plain text, BibTeX, RIS (EndNote), ReDIF
Length: 28 pages
Date of creation: Sep 2004
Date of revision: Sep 2004
Handle: RePEc:met:wpaper:0411

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Web page: http://www.erc.metu.edu.tr
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Related research
Keywords: Unequal exchange development commodity chains

Find related papers by JEL classification:
F02 - International Economics - - General - - - International Economic Order; Noneconomic International Organizations;; Economic Integration and Globalization: General
F2 - International Economics - - International Factor Movements and International Business
F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance

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  1. Kenney, Martin & Florida, Richard, 1994. "Japanese maquiladoras: Production organization and global commodity chains," World Development, Elsevier, vol. 22(1), pages 27-44, January. [Downloadable!] (restricted)
  2. H. Schmitz & P. Knorringa, 2000. "Learning from Global Buyers," The Journal of Development Studies, Taylor and Francis Journals, vol. 37(2), pages 177-205, December. [Downloadable!] (restricted)
  3. Kaplan, David & Kaplinsky, Raphael, 1999. "Trade and Industrial Policy on an Uneven Playing Field: The Case of the Deciduous Fruit Canning Industry in South Africa," World Development, Elsevier, vol. 27(10), pages 1787-1801, October. [Downloadable!] (restricted)
  4. Dutt, Amitava Krishna, 1992. "The NICs, global accumulation and uneven development: implications of a simple three- region model," World Development, Elsevier, vol. 20(8), pages 1159-1171, August. [Downloadable!] (restricted)
  5. Cem Somel, 2003. "Estimating the surplus in the periphery: an application to Turkey," Cambridge Journal of Economics, Oxford University Press, vol. 27(6), pages 919-933, November.
  6. Gibbon, Peter, 2001. "Upgrading Primary Production: A Global Commodity Chain Approach," World Development, Elsevier, vol. 29(2), pages 345-363, February. [Downloadable!] (restricted)
  7. Feenstra, Robert C, 1998. "Integration of Trade and Disintegration of Production in the Global Economy," Journal of Economic Perspectives, American Economic Association, vol. 12(4), pages 31-50, Fall. [Downloadable!] (restricted)
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