International Economics and Development

List of Contributors

Preface

Biographical Notes on Dr. Prebisch

I. Introduction

The Evolution of Prebisch 's Economic Thought

References

The Impact of Prebisch's Ideas on Modern Economic Analysis

I. Introduction

II. The Latin American Economic School

III. Consequences of Prebisch's Propositions for Economic Policy in Underdeveloped Countries

IV. The Response of the Economists and Governments in Advanced Areas

References

II. On Institutions and Ideas

Twisted Terminology and Biased Theories

References

III. Theoretical Approaches

Stability Conditions in the Real and Monetary Models of International Trade

I. Introduction

II. The Basic Model

III. Stability Conditions under the Variable Exchange-Rate System

IV. Output Expansion and the Terms of Trade under the Variable Exchange-Rate System

V. Stability Conditions and the Effect of Devaluation under the Fixed Exchange-Rate System

VI. Output Expansion, the Trade Balance, and the Terms of Trade under the Fixed Exchange-Rate System

VII. A Stability Condition of Underemployment Equilibrium

References

Towards a Reformulation of the Short-Run Theory of the Short-Run Theory of Foreign Exchange

I. Introduction

II. Assumptions and Notation

III. The Simplest Case: A One-Day Planning Horizon

IV. A Two-Day Planning Horizon

V. Next Steps

References

Reflections on Unlimited Labor

I. Some Misconceptions

II. The Model's Turning Points

References

The Center-Periphery System 20 Years Later

I. Introduction: An Idea of the System

II. Principal Changes in the World Economic System

III. Principal Changes in the Working of the Center-Periphery System

IV. Some Conclusions about the New Center-Periphery Relationship Scheme

References

Consequences of the Existence of "Immobile" Industries

I. Some Definitions

II. How to Cure Balance of Payments Difficulties

III. Macroplanning of Development

IV. Choosing the Sectors to Develop

V. Concluding Remarks

References

A Long-Run Economic Growth Model for Developing Countries

I. The Model of Economic Growth

II. Estimation of the International Sector with Colombian and Prewar Japanese Data: A Cursory Investigation

III. Comparisons of the Model with Other Development Models

References

IV. Economic Policy, Foreign Trade, and Development

Industrial Policies in Taiwan and Korea

I. "Inward-Looking" and "Outward-Looking" Development Strategies

II. Industrial Policies during the Fifties

III. Reasons for Adopting an "Outward-Looking" Strategy

IV. The System of Incentives

V. Export Performance and Economic Growth

VI. Manufacturing Output and Exports

VII. Export Composition and Industrial Structure

VIII. Some Adverse Effects of the Incentive System

IX. Future Prospects

X. Conclusions

References

LDC Exports: A Cross-Sectional Analysis

I. LDC Country Size and Share of Exports in GDP

II. The Share of Manufacturing Exports in Total Exports of LDCs

References

Protection and Growth

I. How Protection Affects Savings: The Real Income Effect

II. How Protection Affects Savings: Income Distribution Effect

III. How Protection Affects Savings: Other Effects

IV. The Effects of Protection on Savings: Policy Implications

V. Protection and the Inducement to Invest

VI. Backward Linkage

VII. Learning and the Rate of Growth

References

The Theory of Exploitative Trade and Investment Policies: A Reformulation and Synthesis

I. Introduction

II. A Production Function for Foreign Exchange

III. The Offer Function When Capital Is Mobile

IV. The Problem Formulated

V. Exploitative Tax and Tariff Policies

References

A Stochastic Model of the Functional Distribution of Income

I. Introduction

II. Theories of Income Distribution

III. Economic Surplus and Theory of Games

IV. Structure and Dynamics of Income Distribution

V. Specification of Model I

VI. Characteristics of the Unbiased Predictor

VII. Parameter Estimation

VIII. Asymptotic Covariance Matrix of the Estimators

IX. Asymptotic Distribution of the Estimators

X. Specification of an Alternative: Model II

XI. Applications

XII. Conclusion

References

Industrializing Industries and the Economic Integration of Less-Developed Countries

I. The Content of an Industrialization Policy

II. The Conditions for an Effective Industrialization Policy

References

The Contribution of Foreign Trade to National Income

References

Origins and Consequences of Import Substitution in Brazil

Appendix I

Appendix II

References

V. Foreign Investment and Economic Development

Notes on Foreign Capital and Latin America

I. Introduction

II. Foreign Capital Role in the Process of Development

III. Some Problems of Foreign Capital

IV. Conclusions

Appendix

References

Direct Investment in Less-Developed Countries: Historical Wrongs and Present Values

I. Introduction

II. The Variables

III. Three Identities

IV. Marketing

V. Labor Costs

VI. Capital Costs

VII. Technology and Management

VIII. Government Expenditure

IX. Taxes

X. External Economies and Diseconomies

XI. Amortization

XII. Risk

XIII. Nationalism

XIV. Discount Rates

XV. Conclusion

References

VI. Problems of Regional Development

Conditions and Objectives of African Economic Development

I. Introduction

II. National Construction

III. Development Conditions and Opportunity Costs

IV. Population Growth, Migration, and Unemployment

V. Economic Relations with Metropolitan Powers

VI. African Development Planning

VII. Potential Role of Monetary Institutions

References

The International Politics of Latin American Economics

I. Introduction

II. The Policy of Weakness: 50s and Early 60s

III. The United States Foreign Policy Machine

IV. Some Suggestions for Latin American Strategy

References

VII. International Cooperation

The "Crisis of Aid" and the Pearson Report

VIII. The Socio-Economic Approach

The Social Doctrine in Prebisch's Thought

References

Appendix: The Work of Dr. Raúl Prebisch

Author Index

Subject Index