Commodity Chains, Unequal Exchange and Uneven Development
AbstractResearch 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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Bibliographic InfoPaper provided by ERC - Economic Research Center, Middle East Technical University in its series ERC Working Papers with number 0411.
Length: 28 pages
Date of creation: Sep 2004
Date of revision: Sep 2004
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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