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Why International Price Structures Differ

In: Why Developing Countries Fail to Develop

Author

Listed:
  • Purushottam Narayan Mathur

    (University College of Wales)

Abstract

The important work of Kravis, Heston, and Summers (1982) not only gives estimates of the ‘real’ income of the various countries investigated, but also gives a detailed price structure of consumption and investment goods. They found these price structures to be fundamentally different, and neoclassical international trade theory is not able to explain the differences observed. It is intended here to propose a theoretical explanation of this phenomenon that not only does justice to the detailed information thus brought to light, but also is in agreement with the known economic history of the rich and poor countries of our planet.

Suggested Citation

  • Purushottam Narayan Mathur, 1991. "Why International Price Structures Differ," Palgrave Macmillan Books, in: Why Developing Countries Fail to Develop, chapter 18, pages 273-281, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-21343-6_19
    DOI: 10.1007/978-1-349-21343-6_19
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