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Periodical article | Leiden University catalogue | WorldCat |
Title: | The Asymmetric Relationship between Subsaharan Africa and the Rest of the World: A Theoretical Analysis of the Role of Imports Compression |
Author: | Rattsø, Jørn |
Year: | 1992 |
Periodical: | Eastern Africa Economic Review |
Volume: | 8 |
Issue: | 1 |
Pages: | 1-11 |
Language: | English |
Geographic term: | Subsaharan Africa |
Subjects: | international economic relations economic development Economics and Trade |
Abstract: | The international conditions for economic development in sub-Saharan Africa are discussed in a model of the relationship between the region and the rest of the world. The North-South model of L. Taylor (1981) is modified to take into account important characteristics of the region: imported intermediates and import compression policy. The rationing of foreign capital to Africa produces an asymmetry in international relations, and the foreign exchange constraint generates a trade-off between growth and capacity utilization. Policies to stimulate growth in sub-Saharan Africa must attack the continent's import dependency, and expansionary demand policy in the region will have a contractional effect as long as the foreign exchange constraint is binding. Bibliogr., sum. |