Download Westernizing the Third World: The Eurocentricity of Economic by Ozay Mehmet PDF

By Ozay Mehmet

Westernizing the 3rd global exposes the hazards inherent within the use of eurocentric improvement theories and prescriptions. Arguing that either Classical thought and its postwar Neo-Classical theoretical opposite numbers are essentially unsuitable, the textual content discusses version development, macro-planning and the hot financial Order. the realization bargains an exam of the long run schedule for improvement reports.

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Additional resources for Westernizing the Third World: The Eurocentricity of Economic Development Theories

Sample text

The accumulated capabilities in the process will reduce knowledge gaps between foreign technology and domestic innovative capacities. The possibility of a catch-up is, to a large degree, determined by a firm’s access and ability to apply internal and external knowledge efficiently. Hu and Jaffe (2003) argued that developing countries are constrained by the lack of access to advanced knowledge and low abilities to absorb and utilize new knowledge. One of the assumptions that directly triggered the present research was made by Amsden and Chu (2003) that most domestic firms’ catch-ups are not through applying the world most advanced knowledge for product innovation, but through incremental and niche innovations.

One explanation to the paradox lies in what is so-called economies of scale. Economies of scale refer to a production process, in which through increase in the scale of the production, a firm can reduce average unit cost. It is also called increasing returns to scale. A firm that is able to capture the economies of scale would have a cost advantage over its competitors. Unlike Heckscher–Ohlin model, economies of scale do not take factor endowments as preconditions for international trade. This helps explain why trading between developed countries accounts for a large share of the world trade in total.

2 2 Theoritical and Empirical Literature Review Incremental–Radical Dichotomy The incremental and radical model is distinguished in two dimensions: the type of knowledge sources involved in an innovation process and the distance between technology changes (Weiermair 2004). From knowledge source perspective, an incremental innovation is built upon existing knowledge and technological knowhow from both internal and external accessible sources. A radical innovation is developed from knowledge advances.

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