Structures in the International Political Economy:

Abstract

In this article a causal model is developed that explains the unequal level of economic development of Third World countries on the basis of structural variables. The model is tested using empirical data on 84 developing countries from the 1960s, 1970s and 1980s and applying a multi-sample LISREL analysis. The model appears to fit the data for the entire period rather well. In an attempt to analyse the changes of the world system over the last several decades, hypotheses were formulated concerning changes in the form of dependence, democratization in the Third World, and the tendency of Third World countries to diversify their production. The results of the analysis indicate that the expected change from `classical' to `modern' dependence is corroborated by the data. No such change was apparent where political repression was concerned. Finally, the causal chain of primary commodity concentration, exploitation, domestic capital formation and economic development appeared to exhibit significant changes over the 1965-92 period.