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TRADE, DEBT, AND UNEVEN DEVELOPMENT IN A NORTH‐SOUTH MODEL
Author(s) -
Dutt Amitava Krishna
Publication year - 1989
Publication title -
metroeconomica
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.256
H-Index - 29
eISSN - 1467-999X
pISSN - 0026-1386
DOI - 10.1111/j.1467-999x.1989.tb00451.x
Subject(s) - economics , debt , monetary economics , debt crisis , simple (philosophy) , growth model , capital (architecture) , macroeconomics , process (computing) , capital flows , international economics , market economy , geography , philosophy , archaeology , epistemology , computer science , operating system , liberalization
This paper examines a simple model of North‐South trade and capital flows along structuralist lines. The South can choose its growth rate, but must finance its growth in excess of its savings by borrowing from the North. The long‐run consequences of this process for the process of uneven development and for Southern debt‐dependence are explored. The appropriate responses to a debt crisis are considered.