Open AccessInternational Competition, Debt, and Uneven Development in a North-South Macroeconomic Model
Author(s) -
Takehiro Abe
Publication year - 2008
Publication title -
pakistan development review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.154
H-Index - 26
ISSN - 0030-9729
DOI - 10.30541/v47i3pp.267-283
Subject(s) - competition (biology) , economics , debt , international economics , international trade , external debt , macroeconomics , ecology , biology
This paper examines whether the intensification ofinternational competition widens the gap between developing anddeveloped economies. The intensification of international competitionwith an influential trade union in the North is known to lower theNorth’s markup rate. This paper is unique because it points out that theintensification of international competition can widen the North-Southgap when the Southern debt is taken into consideration. It also showsthat the egalitarian policy in the North as influenced by trade unionsis compatible with its international policy: relief of interestpayments. JEL classification: F19, O19 Keywords: North-South, UnevenDevelopment, Debt