By Dic Lo (auth.)
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Extra info for Alternatives to Neoliberal Globalization: Studies in the Political Economy of Institutions and Late Development
Third, because this development pattern would not automatically lead to the formation of indigenous technological capabilities, developing economies would find it difficult to improve upon imported technology for promoting the export competitiveness of their industries, which might be necessary, however, for sustaining the continuous importation of technology and hence growth. Thus economies developing along the line of peripheral Fordism may be constantly under the threats of underconsumption at the domestic front and balance of payment deficits at the international front.
G. containerization) and communication has made industry less tied to specific locations. , p. 13). This explains the trend of rapidly expanding ‘migration of capital’ in world economic development since the mid-1960s. Attracted by low labour cost in the developing world, there has been a massive relocation of manufacturing activities, in the form of subcontracting or foreign direct investment. This has led to the proliferation of export processing zones. ’ At the normative level, it is conceivable that the NIDL phenomenon is seen by the exponents as nothing better than the ‘old’ international division of labour (Frank 1981; Fröbel et al.
This reasoning carries a strong stagnationist or under-consumptionist inclination, and contrasts with the supply-side focus of both the NIDL thesis and the Washington Consensus doctrine – and indeed much of the neoclassical endogenous growth literature (see the surveys by its chief protagonists, Romer 1994 and Solow 1994; Chapter 4 of this book provides a critical assessment of the literature). What accounts for the existence of a domestic market of sufficient size in the first instance? Given the deterministic overtone of conventional radical writings, this amounts to questioning the origin of the new development pattern.
Categories: Economic Theory