SOUTHERN PRIMARY EXPORTS, TECHNOLOGICAL-CHANGE AND UNEVEN DEVELOPMENT

A two-region model is developed to examine the implications of trade a nd capital flows between the North, which produces a good which is use d for consumption and investment purposes in both the North and the So uth, and the South, which produces a good which is used as a consumpti on good in the South and as a primary intermediate good in the North. The main purpose of the paper is to analyse the implications of techno logical change in the North which reduces its dependence on the import ed intermediate good. Special attention is focused on North-South term s of trade movements and on the possibility of international uneven de velopment. (C) 1996 Academic Press Limited