Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/238161
Authors: 
Basu, Deepankar
Vasudevan, Ramaa
Year of Publication: 
2021
Series/Report no.: 
Working Paper No. 2021-13
Publisher: 
University of Massachusetts, Department of Economics, Amherst, MA
Abstract: 
We revisit the hypotheses of unequal exchange and deterioratingterms of trade in the specific context of import-intensive, export-led strategies of developing countries which rely on integration intoGVCs for access to markets in developed countries using a stylizedtwo-country two-commodity Classical- Marxian trade model. Twosources of asymmetry can be distinguished: market power arisingfrom the competition between suppliers that depresses the prices atwhich the final good is supplied; and monopoly power arising fromthe lead firms control and ownership of intangible assets includingbrand and design. The model explores some implications of thesetwo sources of asymmetry.
Subjects: 
Unequal Exchange
Global Value Chains
Classical TradeModel
JEL: 
F02
F23
O19
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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