Singer, Bacha, Edmar L. Athukorala, Premachandra, Prema-chandra Athukorala, Evans, David,
NTA UGC NET 2021 - Exam Dates, Notification, Eligibility, Syllabus, Result
NTA UGC NET - Exam Dates, Notification, Eligibility, Syllabus, Result
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. As of [update] , recent statistical studies have given support for the idea. A common explanation for this supposed phenomenon is that manufactured goods have a greater income elasticity of demand than primary products, especially food. Therefore, as incomes rise, the demand for manufactured goods increases more rapidly than demand for primary products. In addition, primary products have a low price elasticity of demand , so a decline in their prices tends to reduce revenue rather than increase it. This theory implies that the very structure of the global market is responsible for the persistent inequality within the world system.
For many lay people, economic development - by which we mean the analysis of the economic progress of nations - is what economics as a whole is designed to address. Indeed, what but to find the "nature and causes" of economic development was Adam Smith's purpose? For modern economists, however, the status of economic development is somewhat more uncomfortable: it has always been the maverick field, lurking somewhere in the background but not really considered "real economics" but rather an amalgam of sociology, anthropology, history, politics and, all-too- often, ideology. Nonetheless, few of the greatest economists actually ignored it outright.
Dependency theory is the notion that resources flow from a "periphery" of poor and underdeveloped states to a "core" of wealthy states , enriching the latter at the expense of the former. It is a central contention of dependency theory that poor states are impoverished and rich ones enriched by the way poor states are integrated into the " world system ". This theory was officially developed in the late s following World War II, as scholars searched for the root issue in the lack of development in Latin America.