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A general equilibrium theory of North-South trade

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  • Chichilnisky, Graciela

Abstract

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.

Suggested Citation

  • Chichilnisky, Graciela, 1986. "A general equilibrium theory of North-South trade," MPRA Paper 8810, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:8810
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    References listed on IDEAS

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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. Srinivasan, T. N. & Bhagwati, Jagdish N., 1984. "A Rejoinder," Journal of Development Economics, Elsevier, vol. 15(1-3), pages 173-175.
    4. Chichilnisky, Graciela & McLeod, D., 1984. "Agricultural productivity and trade: Argentina and the U.S.A," MPRA Paper 8081, University Library of Munich, Germany.
    5. 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.
    6. Ranney, Susan I., 1984. "Terms of trade and domestic distribution : A comment," Journal of Development Economics, Elsevier, vol. 15(1-3), pages 89-96.
    7. Chichilnisky, Graciela & Cole, Sam, 1979. "A model of technology, domestic distribution and North-South relations," MPRA Paper 7999, University Library of Munich, Germany.
    8. 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.
    9. Kenneth J. Arrow & Robert C. Lind, 1974. "Uncertainty and the Evaluation of Public Investment Decisions," Palgrave Macmillan Books, in: Chennat Gopalakrishnan (ed.), Classic Papers in Natural Resource Economics, chapter 3, pages 54-75, Palgrave Macmillan.
    10. 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.
    11. Chichilnisky, Graciela, 1984. "North-South trade and exported-led policies," Journal of Development Economics, Elsevier, vol. 15(1-3), pages 131-160.
    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. Saavedra-Rivano, Neantro, 1984. "Terms of trade and domestic distribution : A comment," Journal of Development Economics, Elsevier, vol. 15(1-3), pages 105-110.
    14. 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.
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    Citations

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    Cited by:

    1. Chichilnisky, Graciela & Di Matteo, Massimo, 1998. "Trade, migration, and environment: a general equilibrium analysis, Chapter 2.3," MPRA Paper 8819, University Library of Munich, Germany.
    2. Chichilnisky, Graciela, 1990. "Large and small models: their suitability for North-South issues," MPRA Paper 8354, University Library of Munich, Germany.
    3. Chichilnisky, Graciela, 1996. "Trade regimes and GATT: resource-intensive vs. knowledge intensive growth," MPRA Paper 8493, University Library of Munich, Germany.
    4. Graciela Chichilnisky, 1998. "The knowledge revolution," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 7(1), pages 39-54.
    5. Chichilnisky, Graciela & Abraham, Ralph & Record, Ron, 1998. "North-South trade and the dynamics of the environment, Chapter 2.2," MPRA Paper 8818, University Library of Munich, Germany.
    6. Chichilnisky, Graciela, 1996. "Trade regimes and Gatt: resource intensive vs. knowledge intensive growth, Chapter 10," MPRA Paper 8813, University Library of Munich, Germany.
    7. Graciela Chichilnisky, 1990. "On The Mathematical Foundations Of Political Economy," Contributions to Political Economy, Cambridge Political Economy Society, vol. 9(1), pages 25-41.
    8. Chichilnisky, Graciela, 1994. "North-South trade, property rights and the dynamics of environmental resources," MPRA Paper 8415, University Library of Munich, Germany.
    9. Chichilnisky, Graciela, 1990. "Global models and North-South relations," MPRA Paper 8126, University Library of Munich, Germany.
    10. Chichilnisky, Graciela, 1996. "Property rights and the dynamics of North-South trade, chapter 8," MPRA Paper 8514, University Library of Munich, Germany.
    11. Blecker, Robert A., 1996. "The new economic integration: Structuralist models of North-South trade and investment liberalization," Structural Change and Economic Dynamics, Elsevier, vol. 7(3), pages 321-345, September.
    12. Chichilnisky, Graciela, 1992. "Strategies for trade liberalization in the Americas," Sede de la CEPAL en Santiago (Estudios e Investigaciones) 33919, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    13. Chichilnisky, Graciela, 1994. "Property rights and the dynamics of renewable resources in North-South trade, Chapter 1," MPRA Paper 8513, University Library of Munich, Germany.

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    More about this item

    Keywords

    competitive general equilibrium; equilibrium theory; Walras; international trade; economic behavior; developing; developed; north-south; north-south trade; policy; modelling; modeling; models; export-led policy;
    All these keywords.

    JEL classification:

    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis
    • D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies
    • D60 - Microeconomics - - Welfare Economics - - - General

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