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A general equilibrium theory of North-South trade

  • Chichilnisky, Graciela

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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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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  1. Chichilnisky, Graciela, 1984. "Terms of trade, domestic distribution and export-led growth : A Rejoinder to rejoinders," Journal of Development Economics, Elsevier, vol. 15(1-3), pages 177-184.
  2. Srinivasan, T. N. & Bhagwati, Jagdish N., 1984. "On transfer paradoxes and immiserizing growth : Part II," Journal of Development Economics, Elsevier, vol. 15(1-3), pages 111-115.
  3. Chichilnisky, Graciela, 1984. "North-South trade and exported-led policies," Journal of Development Economics, Elsevier, vol. 15(1-3), pages 131-160.
  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.
  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. 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.
  7. 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.
  8. 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.
  9. Srinivasan, T. N. & Bhagwati, Jagdish N., 1984. "A Rejoinder," Journal of Development Economics, Elsevier, vol. 15(1-3), pages 173-175.
  10. Ranney, Susan I., 1984. "Terms of trade and domestic distribution : A comment," Journal of Development Economics, Elsevier, vol. 15(1-3), pages 89-96.
  11. Saavedra-Rivano, Neantro, 1984. "Terms of trade and domestic distribution : A comment," Journal of Development Economics, Elsevier, vol. 15(1-3), pages 105-110.
  12. 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.
  13. Chichilnisky, Graciela & Cole, Sam, 1979. "A model of technology, domestic distribution and North-South relations," MPRA Paper 7999, University Library of Munich, Germany.
  14. Chichilnisky, Graciela & McLeod, D., 1984. "Agricultural productivity and trade: Argentina and the U.S.A," MPRA Paper 8081, University Library of Munich, Germany.
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