Uneven Development, Choice of Technique, and Generalized Worldwide Law of Value

Abstract

We address the issue of persistent uneven development from a Marxist perspective. First, we show the conceptual problems in applying the unmodified law of value to the international setting. Second, we propose a generalization of the global law of value by introducing an additional level of abstraction into the global valorization process—national abstract labor. Third, we examine broad cases of internationalization caused by deviations in productivity differences across industries from the average productivity differences across countries. We discover an endogenous national and international dynamic push toward specialization that perpetuates uneven development. The benefits of such specialization are skewed in favor of more developed countries, and the potential for technological improvement created by the global division of labor blocks technological progress in less developed countries. JEL Classification: B14, F00, F63, O14