Some results from a model of trade, aid and development in South

Chichilnisky, Graciela (1978): Some results from a model of trade, aid and development in South. Published in: Issues and Analysis of Long Term Development, Proceedings of Seminar at the Institute of Development (1981): pp. 96-112.

Abstract

In this paper I describe certain results that were obtained in the UNITAR project based on a model I have specified for studying the relationship between international terms of trade and domestic income distributions of the exporting countries within the South. In particular, I shall concentrate on those countries that have certain characteristics that distinguish the situation of the underdeveloped world today. I shall discuss the implications of these results about the question of the transmission of the growth from the North to the South through international markets, both through trade and through aid. The results are of crucial importance to a proper discussion of the scenarios outline in the two previous papers.

In particular, I shall present a set of results that contradict the statement that he growth of the North is necessary or even at all favorable to the growth of the South, which is central to much thinking about the New International Economy Order. I shall also briefly discuss the relation of these results with the more orthodox Stolper-Samuelson factor of price equalization theory.

• Item Type: MPRA Paper
• Language: English
• Keywords: economic order; income distribution; north; south; UNITAR; markets; growth; Stolper-Samuelson; Stoper; Samuelson; price equilibrium theory; equilibrium; trade; elasticity; elastic; inelastic; Heckscher-Ohin theory; Heckscher; Ohlin; policy; terms of trade; international
• Subjects: F - International Economics > F0 - General > F02 - International Economic Order and Integration; I - Health, Education, and Welfare > I3 - Welfare, Well-Being, and Poverty; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity

References

"Development Patterns and the International Order", Chichilnisky, Journal of International Affairs, 1977.

"Basic Goods, the Effects of Ais and the New International Economic Order", by G. Chichilnisky, Development Discussion Paper, No. 40, Harvard Institute for Internaitonal Development, June 1978.

"Growth of the North and of the South with export led policies", by G. Chichilnisky and S. Cole, Harvard Institute for International Development paper, No. 42, 1978.

"Technology Demestic Distribution and North South Relations" by G. Chichilnisky and S. Cole, UNITAR Project Report, 1978.

Diaz-Alejandro, C., "Essays on the Economic History of Argentina", Yale University Press, 1970.

Clark, I., Cole, S., and Lucas, H., "Calibration and Solutions of a Model of North South Relations. Journal of Applied MAthematical Modelling, 1979.