International Competition, Debt, and Uneven Development in a North-South Macroeconomic Model

Taro Abe

Abstract


This paper examines whether the intensification of
international competition widens the gap between developing and
developed economies. The intensification of international competition
with an influential trade union in the North is known to lower the
North’s markup rate. This paper is unique because it points out that the
intensification of international competition can widen the North-South
gap when the Southern debt is taken into consideration. It also shows
that the egalitarian policy in the North as influenced by trade unions
is compatible with its international policy: relief of interest
payments.

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DOI: https://doi.org/10.30541/v46i3pp.267-283

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