The structure of Third World economic interdependence

Abstract

Empirical studies of interdependence have mainly focused on whether interdependence has been increasing or declining on a world scale. In this research note I examine the nature of economic interdependence in the less developed countries (LDCs). The main question that I address is whether LDCs are more economically dependent, in the sense of being more deeply involved in economic interdependence relationships, than developed countries (DCs). Richard Cooper and Edward Morse have argued that economic interdependence is associated with increased industrialization and modernization—implying that LDCs are less involved than DCs in interdependence relationships. Empirical evidence presented here suggests that LDCs are, in fact, more dependent than DCs.