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Neoliberal Economics and Caribbean Economies

  • Winston H. Griffith
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    Neoclassical economic theory asserts that, when market forces determine the prices of goods and services, resources are allocated most efficiently, economies grow faster and populations enjoy higher standards of living. It also argues that free trade helps to promote an efficient allocation of resources, allowing countries to specialize in the production of goods and services in which they have a comparative advantage. This article takes a contrary view and hypothesizes that unfettered market forces will harm Caricom countries, given their present level of development. It therefore recommends that Caribbean governments play an active role in economic affairs to effect a more socially efficient use of resources and to promote the growth of the manufacturing and agricultural sectors.

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    Article provided by M.E. Sharpe, Inc. in its journal Journal of Economic Issues.

    Volume (Year): 44 (2010)
    Issue (Month): 2 (June)
    Pages: 505-512

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    Handle: RePEc:mes:jeciss:v:44:y:2010:i:2:p:505-512
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