By Dic Lo (auth.)
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Additional resources for Alternatives to Neoliberal Globalization: Studies in the Political Economy of Institutions and Late Development
Henderson (1989, p. 25) puts it thus: ‘in connection with the problem of commodity circulation (realisation), the structure of the market becomes an important determinant of both the spatial dispersal of an industry and its subsequent evolution in any particular location. ’ The Marxian terms ‘realization’ and ‘valorization’ refer, respectively, to trade and production, with the latter being based on either the growth of labour productivity (relative surplus value) or ‘cheap labour’ (absolute surplus value).
Conceptual arguments alone are of course insufficient for resolving the policy debates. This chapter does not review the literature of empirical research. But, on the whole, it should be fair to say that on this 36 Alternatives to Neoliberal Globalization front the orthodox position does not appear to be much stronger and the case for state strategies much weaker. Amid the trend of extremely uneven development especially in the 1980s and 1990s – the continued rapid growth and exports expansion of East Asia, as opposed to the ‘lost decade’ for the rest of the developing world – the implications of the division are particularly eminent.
What distinguishes these theoretical strands from mainstream economics is their focus on institutional, as well as technical, innovations. With the emphasis on the importance of demand-side conditions in shaping innovations and hence growth, these theories also formulate specific links between the micro and macro aspects of the 24 Alternatives to Neoliberal Globalization economy. This further distinguishes them from mainstream equilibrium economics, which typically assumes that Say’s Law holds.
Alternatives to Neoliberal Globalization: Studies in the Political Economy of Institutions and Late Development by Dic Lo (auth.)