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A general equilibrium theory of North-South trade

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Author Info
Chichilnisky, Graciela

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Abstract

This chapter presents an application of competitive general equilibrium theory of markets in the spirit of Walras, formalized in the 1950s by K. Arrow and by G. Debreu. In using general equilibrium theory to generate insight into current policy issues, it follows a tradition established by Arrow in his work on welfare economics of medical care (1963), on the organization of economic activity (1969), on the evaluation of public investment (Arrow and Lind, 1970), and in urban development (1970). The intention if to use formalized general equilibrium theory to derive general statements about the economic behavior and interrelations between two groups of countries: industrial and developing countries.The goal is to obtain simple and general results, and for this purpose we consider a styled model with the minimum of characteristics needed for the task: two regions, two produced goods, and two factors of production. Within this simple model, we explore issues of current import, such as export-led policies and the transmission of economic activity between regions.

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Publisher Info
Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 8810.

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Date of creation: 1986
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Handle: RePEc:pra:mprapa:8810

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Related research
Keywords: competitive general equilibrium; equilibrium theory; Walras; international trade; economic behavior; developing; developed; north-south; north-south trade; policy; modelling; modeling; models; export-led policy;

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Find related papers by JEL classification:
D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis
D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies
D60 - Microeconomics - - Welfare Economics - - - General

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  1. Heal, Geoffrey & McLeod, Darryl, 1984. "Gains from trade, stability and profits : A comment on Chichilnisky's Terms of trade and domestic distribution: export-led growth with abundant labour," Journal of Development Economics, Elsevier, vol. 15(1-3), pages 117-130. [Downloadable!] (restricted)
  2. Srinivasan, T. N. & Bhagwati, Jagdish N., 1984. "A Rejoinder," Journal of Development Economics, Elsevier, vol. 15(1-3), pages 173-175. [Downloadable!] (restricted)
  3. Findlay, Ronald, 1984. "A comment on North-South trade and export-led policies," Journal of Development Economics, Elsevier, vol. 15(1-3), pages 161-167. [Downloadable!] (restricted)
  4. Gunning, Jan Willem, 1984. "Export-led growth with abundant labour : A Defense of Orthodoxy," Journal of Development Economics, Elsevier, vol. 15(1-3), pages 97-103. [Downloadable!] (restricted)
  5. Arrow, Kenneth J & Lind, Robert C, 1970. "Uncertainty and the Evaluation of Public Investment Decisions," American Economic Review, American Economic Association, vol. 60(3), pages 364-78, June.
  6. Saavedra-Rivano, Neantro, 1984. "Terms of trade and domestic distribution : A comment," Journal of Development Economics, Elsevier, vol. 15(1-3), pages 105-110. [Downloadable!] (restricted)
  7. Ranney, Susan I., 1984. "Terms of trade and domestic distribution : A comment," Journal of Development Economics, Elsevier, vol. 15(1-3), pages 89-96. [Downloadable!] (restricted)
  8. Chichilnisky, Graciela & Cole, S., 1979. "A model of technology, domestic distribution and North-South relations," MPRA Paper 7999, University Library of Munich, Germany. [Downloadable!]
  9. Chichilnisky, Graciela, 1981. "Terms of trade and domestic distribution : Export-led growth with abundant labour," Journal of Development Economics, Elsevier, vol. 8(2), pages 163-192, April. [Downloadable!] (restricted)
  10. Findlay, Ronald, 1984. "Growth and development in trade models," Handbook of International Economics, in: R. W. Jones & P. B. Kenen (ed.), Handbook of International Economics, edition 1, volume 1, chapter 4, pages 185-236 Elsevier. [Downloadable!] (restricted)
  11. Chichilnisky, Graciela, 1984. "North-South trade and exported-led policies," Journal of Development Economics, Elsevier, vol. 15(1-3), pages 131-160. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Chichilnisky, Graciela & Di Matteo, Massimo, 1998. "Trade, migration, and environment: a general equilibrium analysis, Chapter 2.3," MPRA Paper 8819, University Library of Munich, Germany. [Downloadable!]
  2. Chichilnisky, Graciela, 1994. "North-South trade, property rights and the dynamics of environmental resources," MPRA Paper 8415, University Library of Munich, Germany. [Downloadable!]
  3. Chichilnisky, Graciela, 1996. "Property rights and the dynamics of North-South trade, chapter 8," MPRA Paper 8514, University Library of Munich, Germany. [Downloadable!]
  4. Chichilnisky, Graciela, 1990. "Global models and North-South relations," MPRA Paper 8126, University Library of Munich, Germany. [Downloadable!]
  5. Chichilnisky, Graciela, 1990. "Large and small models: their suitability for North-South issues," MPRA Paper 8354, University Library of Munich, Germany. [Downloadable!]
  6. Chichilnisky, Graciela, 1996. "Trade regimes and GATT: resource-intensive vs. knowledge intensive growth," MPRA Paper 8493, University Library of Munich, Germany. [Downloadable!]
  7. Chichilnisky, Graciela, 1994. "Property rights and the dynamics of renewable resources in North-South trade, Chapter 1," MPRA Paper 8513, University Library of Munich, Germany. [Downloadable!]
  8. Chichilnisky, Graciela, 1998. "The knowledge revolution," MPRA Paper 8891, University Library of Munich, Germany. [Downloadable!]
  9. Chichilnisky, Graciela & Abraham, Ralph & Record, Ron, 1998. "North-South trade and the dynamics of the environment, Chapter 2.2," MPRA Paper 8818, University Library of Munich, Germany. [Downloadable!]
  10. Chichilnisky, Graciela, 1990. "On the mathematical foundations of political economy," MPRA Paper 8123, University Library of Munich, Germany. [Downloadable!]
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