Economics 2150A/B Study Guide - Quiz Guide: Dependency Theory, Dutch Disease, Core Countries

• School: Western University
• Department: Economics
• Course: Economics 2150A/B
• Professor: Colin Denniston

Document Summary

Underdevelopment is a result of global capitalist exploitation. Shifts exploitation in marxist capitalism between countries. Key is to keep underdeveloped areas focused on resource extraction and export. Marx"s proletariat - peripheral countries/capitalists-core developed countries. Dependence maintains capitalist control over labour and resources. Since 1960s, resource poor countries have outperformed the resource rich countries (auty, 200. Colonies with greater natural resources do worse in data empirically supported by real. Gdp per capita negatively related to exports of natural resources/gdp. Natural resources generate high ws in all talent and focus ng wages & prices. Export sectors become uncompe gh rent seeking, low innovation, l elopment state titive ow entrepreneurial activity, poor er gov. Worsening in terms of trade for primary goods. World system replaces nation states as unit of analysis. Core countries do not exploit periphery as in other dependency theories (exploit labour i n all zones) Extraction from periphery to core mics of empire of world.