Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/319482 
Year of Publication: 
2024
Citation: 
[Journal:] China Political Economy (CPE) [ISSN:] 2516-1652 [Volume:] 7 [Issue:] 2 [Year:] 2024 [Pages:] 244-268
Publisher: 
Emerald, Leeds
Abstract: 
Purpose - Utilizing the Marxist theory of unequal exchange to explain the terms of trade between nations, this paper elucidates one possible mechanism that gives rise to ecologically unequal exchange between developed and developing economies. Design/methodology/approach - We propose a two-sector linear production model and demonstrate that a decrease in the organic composition of capital and an increase in the rate of surplus value in a sector will lead to a relative price decrease and value transfer out of that particular sector, as well as increasing the environmental costs of trade. Furthermore, we measure the levels of unequal exchange (value transfer) and ecologically unequal exchange of 40 economies and empirically validate their relationship. Findings - The findings suggest that an important cause of the ecologically unequal exchange is the value transfer between economies caused by the international division of labor and real wage disparities. The inequality in international trade is a significant factor contributing to the gap in the ecological environment level between developed and developing economies. Originality/value - By introducing the theory of unequal exchange or value transfer into the analysis of ecological unequal exchange, we provide a mathematical framework for analyzing ecological unequal exchange and a method for calculating the scale of ecological unequal exchange and value transfer, thereby enhancing the theoretical depth and practical significance of the ecological unequal exchange theory.
Subjects: 
Ecologically unequal exchange
Terms of trade
Unequal exchange
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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