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Commodity Chains, Unequal Exchange and Uneven Development

  • Cem Somel

    ()

    (Department of Economics, METU)

Registered author(s):

    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 Function: First version, 2004
    Download Restriction: no

    Paper provided by ERC - Economic Research Center, Middle East Technical University in its series ERC Working Papers with number 0411.

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    Length: 28 pages
    Date of creation: Sep 2004
    Date of revision: Sep 2004
    Handle: RePEc:met:wpaper:0411
    Contact details of provider: Postal: Ankara 06531
    Phone: +90 (312) 210 2003
    Fax: (312) 210 1244
    Web page: http://www.erc.metu.edu.tr
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    1. Gibbon, Peter, 2001. "Upgrading Primary Production: A Global Commodity Chain Approach," World Development, Elsevier, vol. 29(2), pages 345-363, February.
    2. Kenney, Martin & Florida, Richard, 1994. "Japanese maquiladoras: Production organization and global commodity chains," World Development, Elsevier, vol. 22(1), pages 27-44, January.
    3. R. Kaplinsky, 2000. "Globalisation and Unequalisation: What Can Be Learned from Value Chain Analysis?," Journal of Development Studies, Taylor & Francis Journals, vol. 37(2), pages 117-146.
    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.
    5. Robert Feenstra, 2003. "Integration Of Trade And Disintegration Of Production In The Global Economy," Working Papers 986, University of California, Davis, Department of Economics.
    6. 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.
    7. Wood, Adrian, 1995. "North-South Trade, Employment and Inequality: Changing Fortunes in a Skill-Driven World," OUP Catalogue, Oxford University Press, number 9780198290155, March.
    8. Prema-Chandra Athukorala, 2000. "Manufactured exports and terms of trade of developing countries: Evidence from Sri Lanka," Journal of Development Studies, Taylor & Francis Journals, vol. 36(5), pages 89-104.
    9. 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.
    10. H. Schmitz & P. Knorringa, 2000. "Learning from Global Buyers," Journal of Development Studies, Taylor & Francis Journals, vol. 37(2), pages 177-205.
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