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Raúl Prebisch (April 17, 1901 – April 29, 1986) was an Argentine economist known for his contributions to structuralist economics such as the Prebisch–Singer hypothesis, which formed the basis of economic dependency theory.
Dependency theory is the idea that resources flow from a "periphery" of poor and exploited states to a "core" of wealthy states, enriching the latter at the expense of the former. A central contention of dependency theory is that poor states are impoverished and rich ones enriched by the way poor states are integrated into the "world system".
In economics, the Prebisch–Singer hypothesis (also called the Prebisch–Singer thesis) argues that the price of primary commodities declines relative to the price of manufactured goods over the long term, which causes the terms of trade of primary-product-based economies to deteriorate.
Prebisch began with arguments that economic inequality and distorted development was an inherent structural feature of the global system exchange. As such, early structuralist models emphasised both internal and external disequilibria arising from the productive structure and its interactions with the dependent relationship developing countries ...
This drew criticism from fellow economists Jacob Viner and Gottfried Haberler and led to his fame as co-originator with Raul Prebisch for the Prebisch-Singer thesis. Since, it was well-known at the time that Singer was the author of the 1949 UN publication on relative prices, it was also referred to as the Singer-Prebisch theorem, to indicate ...
The theory of unequal exchange is a rejection of the fundamental assumptions of Ricardian and neoclassical theories of comparative advantage, which claim that free trade based on comparative costs is beneficial to all parties and in turn represents the theoretical justification of neoliberal trade policies. More generally, the concept is a ...
Dependency theory first emerged in the 1950s, advocated by Raul Prebisch whose research found that the wealth of poor nations tended to decrease when the wealth of rich nations increased. The theory quickly divided into diverse schools. Some, most notably Andre Gunder Frank and Walter Rodney adapted it to Marxism. "Standard" dependency theory ...
Prebisch had experience running his country's central bank and started to question the model of export-led growth. [19] Prebisch came to the conclusion that the participants in the free-trade regime had unequal power and that the central economies (particularly, Britain and the United States) that manufactured industrial goods could control the ...