Unequal Exchange Theory Research Articles

Corruption and Palm Oil in a Cross-National Perspective: How India Contributes to Forest Loss in Peripheral Nations

Drawing on the ecologically unequal exchange theory, we assess whether palm oil exports from peripheral nations to India are related to increased forest loss in the peripheral nations in the context of petty and grand corruption, which has not been done before. We go on to build upon previous cross-national work by examining if petty and grand corruption interacts with the ecologically unequal exchange of palm exports from peripheral nations to India. We test this hypothesis using ordinary least squares regression for a sample of 78 peripheral nations and find that palm oil exports to India are related to more forest loss in peripheral nations with higher rather than lower levels of petty and grand corruption. We conclude by discussing the theoretical, methodological and policy implications that follow from our findings.

Ecologically Unequal Exchange and Farm Animal Welfare: An Empirical Analysis Using the Voiceless Animal Cruelty Index

ABSTRACT Ecologically unequal exchange theory explains that unequal trade arrangements between higher- and lower-income countries result in greater environmental degradation in lower-income countries. Farm animals are sometimes neglected by sociology because of their unique place between nature and society. Here, we extend ecologically unequal exchange theory to analyze trade relationships between higher- and lower-income countries and farm animal cruelty, using data from 2014. Results from regression analyses show that contrary to what we would expect based on ecologically unequal exchange theory, higher levels of exports to high-income countries from low- and middle-income countries is associated with lower overall farm animal cruelty and production of farm animal cruelty. We suggest that this may be the result of spillover effects, where the types of legislation meant to improve farm animal welfare passed in high-income countries are affecting lower-income countries, and call for more research into animal welfare, including research that examines changes over time as data become available.

Ecologically unequal exchange, repression, and forest loss: How China's demand for agricultural products impacts the natural environment

Drawing on ecologically unequal exchange theory and previous cross-national research on the topic, we assess whether agricultural exports from peripheral nations to China tend to increase forest loss in exporting nations. We extend this theory by considering if repressive nations facilitate ecologically unequal exchange between peripheral nations and China. We argue that this may be the case because repressive nations create a “good business climate” for Chinese firms via economic incentives (e.g., tax holidays), regulatory concessions, labor flexibility, and imposed political stability, that exacerbate the harmful impact of agricultural exports from peripheral nations to China on forests. Using ordinary least squares regression for a sample of 60 peripheral nations, we begin by finding support for our main hypothesis that higher levels of agricultural exports sent from peripheral nations to China are related to increased forest loss in the peripheral nations. We go on to find that ecologically unequal exchanges of agricultural products from peripheral nations to China increase forest loss more at higher rather than lower levels of repression.

Global inequities in the prevalence of undernourishment

AbstractObjectiveThis research draws on the theory of unequal exchange to help explain global inequities in the prevalence of undernourishment (PoU).MethodsI evaluate the proposition that the vertical flow of exports to high‐income countries exerts harmful effects on undernourishment in less‐developed countries using fixed effects estimation and generalized least squares random effects tobit panel regression models.ResultsInsights from the theory of unequal exchange help advance our understanding of global inequities in the PoU.ConclusionThis analysis contributes to an emerging body of literature suggesting that this unique form of global economic integration exerts harmful effects on health outcomes in less‐developed countries.

Ecologically Unequal Exchange: Disagreements with Somerville

ABSTRACT Somerville's rejoinder highlights some fundamental divergences between ecologically unequal exchange theory and the classical Marxist position. This brief intervention addresses a few points in his rejoinder that are particularly illustrative of the incompatibility of the two frameworks. It is argued that historical materialism should acknowledge the materiality of world trade as foundational to global inequalities and unsustainability.

Circular Economy and the Changing Geography of International Trade in Plastic Waste.

Plastic pollution has become a major environmental concern worldwide. As the circular economy is increasingly seen as a means for achieving sustainable development, it is imperative to promote the more efficient use of plastics worldwide. An integral part of the circular economy model, trade in waste, and the scrap for recovery is a part of the solution to achieve sustainability. This paper studies the changing geography of the international trade in plastic waste. It reveals increasingly complex patterns of the transboundary trade in plastic waste over more than two decades. The movement of plastic waste from high-income countries to developing nations has been the largest flow, but trade flows of other directions turn out to be significant. The findings of the paper debunk the North-South or core-periphery dichotomy that is embedded in the international environment justice tradition (including the ecologically unequal exchange theory) as well as in international environmental regulatory regimes such as the Basel Convention. The paper contributes to the discussions about value that are central in political economic approaches to global trade (e.g., the global value chain and global production network) by demonstrating the relative, spatial, and dynamic nature of the concept. As the transboundary trade in plastic waste has exacerbated pollution and marine litter in some major receiving countries, it needs to be better monitored and regulated to ensure it is conducted in a transparent and environmentally sound manner. The paper also explores several policy measures that could help tackle the plastic pollution crisis and achieve sustainable development.

The perils of ecologically unequal exchange: Contesting rare-earth mining in Greenland

Rare-earth elements (REE) are essential to produce many ‘green’ technologies such as wind turbines and electric cars, yet the mining and processing of these minerals are highly polluting and environmentally damaging. Ever since China monopolized the REE industry in the 2000s, there has been a scramble for securing new deposits around the world. Greenland possesses an abundance of REE deposits, most of which remain undeveloped, yet the largely Indigenous Inuit population is split over whether REE mining is the right development path for the country. This article mobilizes a historical narrative approach, analyzing documents, interviews, government reports as well as academic and news articles, to understand the recent controversies around REE mining in Greenland within the strategic context of the nascent global green economy. We use ecologically unequal exchange (EUE) theory to understand how Greenland, as a peripheral, less-developed country, is seemingly destined to fulfill a role of provider of raw materials for more industrialized countries that now urgently need to decarbonize their economies. Yet, this development path is contested by the Greenlandic Inuit who seek self-determination and the continuation of their traditional and sustainable ways of living that are highly dependent on nature-based industries such as fishing and hunting. We contribute to EUE theory by highlighting the agency peripheral countries have in defending their self-determined, place-based development paths.

Ecologically Unequal Exchange Theory as Genuine Materialism: A Response to Somerville

ABSTRACT Somerville's brief critique of ecologically unequal exchange (EUE) theory illustrates how entangled traditional labour theories of value are in 19th century discourse on political economy. His incapacity to understand the point of EUE theory reflects the idealist myopia of such discourse, largely oblivious of the material metabolism of world society. For theorists genuinely committed to historical materialism, EUE theory should provide a welcome antidote to mainstream economics.

Imperialist appropriation in the world economy: Drain from the global South through unequal exchange, 1990–2015

Unequal exchange theory posits that economic growth in the “advanced economies” of the global North relies on a large net appropriation of resources and labour from the global South, extracted through price differentials in international trade. Past attempts to estimate the scale and value of this drain have faced a number of conceptual and empirical limitations, and have been unable to capture the upstream resources and labour embodied in traded goods. Here we use environmental input-output data and footprint analysis to quantify the physical scale of net appropriation from the South in terms of embodied resources and labour over the period 1990 to 2015. We then represent the value of appropriated resources in terms of prevailing market prices. Our results show that in 2015 the North net appropriated from the South 12 billion tons of embodied raw material equivalents, 822 million hectares of embodied land, 21 exajoules of embodied energy, and 188 million person-years of embodied labour, worth $10.8 trillion in Northern prices – enough to end extreme poverty 70 times over. Over the whole period, drain from the South totalled $242 trillion (constant 2010 USD). This drain represents a significant windfall for the global North, equivalent to a quarter of Northern GDP. For comparison, we also report drain in global average prices. Using this method, we find that the South’s losses due to unequal exchange outstrip their total aid receipts over the period by a factor of 30. Our analysis confirms that unequal exchange is a significant driver of global inequality, uneven development, and ecological breakdown.

Corrupting Ecologically Unequal Exchange? India and Forest Loss in a Cross-National Perspective

Drawing on ecologically unequal exchange theory and previous cross-national research, the authors assess whether wood exports from peripheral nations to India are related to increased forest loss in the exporting nations. The authors also build on this perspective by assessing if corruption interacts with the ecologically unequal exchange of wood exports to India. In this regard, the authors hypothesize that corruption creates an “institutional context” whereby bribes, kickbacks, and embezzlement by government officials translate into the prioritization of consumptive practices in the short term rather than advocating for long-term investments such as conservation. Toward this end, the authors expect that wood exports to India increase forest loss more in peripheral nations with higher rather than lower levels of corruption. The authors find support for this hypothesis using ordinary least squares regression for a sample of 67 low- and middle-income nations. The authors conclude by discussing the theoretical, methodological, and policy implications that follow from the interaction finding.

A Critique of Ecologically Unequal Exchange Theory

ABSTRACT Ecologically unequal exchange theory has become popular in recent years but it is confused, internally inconsistent, and misrepresents the nature of global extractivism and labour exploitation.

Ecological unequal exchange between Turkey and the European Union: An assessment from value added perspective

The greenhouse gas (GHG) emission reduction policies focus on production and consumption perspectives by primarily concentrating on emissions embodied in demand and supply chains. However, the recent literature on trade points out the importance of the value added content of trade. With globalization, more and more components of final goods are produced in different regions of the world. Therefore, the emission responsibilities are masked by the “value added chains” of final goods that are traded. In this study we investigate the GHG emissions embodied in value added content of Turkish bilateral trade with the European Union (EU) within the context of Ecological Unequal Exchange (EUE) theory. With the model developed, it is possible to trace the direct and indirect emissions along the domestic and foreign value added chains. The analysis is conducted for 22 sectors for the years 1995–2015 using the OECD Trade in Value Added Statistics and World Input-Output Database. Even though Turkey has a trade deficit with the EU for 1995–2015 period, the empirical results of this study indicate that emissions resulting from the exporting activity of Turkey to the EU exceed the EU's GHG emissions resulting from the exporting activity of the EU to Turkey.

The Global Trade in E-Waste: A Network Approach

ABSTRACT Electronic waste trade is a global environmental injustice issue. Electronic waste is composed of precious metals, making its recycling and reuse economically viable. Yet, it contains hazardous components that threaten the health of ecosystems and human communities. This study uses social network analysis to analyze international trade in environmental context, specifically the global trade in electronic waste. While previous quantitative analyses of ecologically unequal exchange address the environmental impacts of trade, this study focuses on the factors encouraging trade formation in the first place. In so doing, concepts from ecologically unequal exchange and world polity theory are placed in network terms using network inferential techniques. Results indicate that countries in the same income group and region are more likely to form trade relationships than across groups, providing support for world polity theory. However, only a few countries receive a disproportionate amount of electronic waste, and these countries tend to be semi-peripheral nations, providing support for ecologically unequal exchange. In conclusion, I describe how the use of network models to understand ecologically unequal exchange complements standard regression techniques, as the emphasis on relationships illuminates hidden patterns of trade.

Global patterns of ecologically unequal exchange: Implications for sustainability in the 21st century

Ecologically unequal exchange theory posits asymmetric net flows of biophysical resources from poorer to richer countries. To date, empirical evidence to support this theoretical notion as a systemic aspect of the global economy is largely lacking. Through environmentally-extended multi-regional input-output modelling, we provide empirical evidence for ecologically unequal exchange as a persistent feature of the global economy from 1990 to 2015. We identify the regions of origin and final consumption for four resource groups: materials, energy, land, and labor. By comparing the monetary exchange value of resources embodied in trade, we find significant international disparities in how resource provision is compensated. Value added per ton of raw material embodied in exports is 11 times higher in high-income countries than in those with the lowest income, and 28 times higher per unit of embodied labor. With the exception of embodied land for China and India, all other world regions serve as net exporters of all types of embodied resources to high-income countries across the 1990–2015 time period. On aggregate, ecologically unequal exchange allows high-income countries to simultaneously appropriate resources and to generate a monetary surplus through international trade. This has far-reaching implications for global sustainability and for the economic growth prospects of nations.

Unequal Exchange: Key Issues for the Labor Theory of Value

Arghiri Emmanuel pioneered the theory of Unequal Exchange—the imperialism of trade—as an explanation for the persistence of underdeveloped economies in the 1960s. But the theory also claims to provide a robust explanation for the abandonment of revolutionary politics by metropolitan working classes, who, in the most extreme versions of this theory, no longer constitute an exploited class. It has remained somewhat dormant as a key to modern imperialism until recently revived in the work of Zak Cope and John Smith, who link this to the emergence of global production chains. What makes this theory so compelling is that it draws on commonly held, but rarely re-examined, consensus understandings of the operations of the law of value much of which has to be unraveled and reconstructed before the fundamental flaws in this thesis can be revealed. This requires a fresh look at the problems of abstract labor, the transformation problem, skilled labor and role of international monetary exchanges for the operation of the law of value.

China, Mining, and Forests: A Cross-National Test of Ecologically Unequal Exchange

ABSTRACT Previous research suggests that China’s growing demand for minerals may adversely impact the natural environment in nations that export mining products to China. However, we are not aware of cross-national research that empirically tests if forest loss in low- and middle-income nations corresponds with their mineral exports being sent to China. Therefore, drawing on ecologically unequal exchange theory and previous research, we assess whether mining exports from low- and middle-income nations to China increase forest loss in the exporting nations. To test if the ecologically unequal exchange of mining exports to China is adversely impacting forests in the exporting nations, we use ordinary least squares (OLS) regression for a sample of 66 low- and middle-income nations. We find support for our main hypothesis that mining exports sent from low- and middle-income nations to China are related to increased forest loss in the exporting nations. Our findings refine and expand upon ecologically unequal exchange theory by demonstrating that China, a middle-income nation, nevertheless is capable of positioning itself favorably in trading opportunities with other low- and middle-income- nations. As China meets its needs for minerals from abroad that are central to its economic growth and industrialization, its low- and middle-income trading partners bear more of the burden of environmental harms from the extraction and export of such minerals.

Unequal raw material exchange between and within countries: Galicia (NW Spain) as a core-periphery economy

A global multi-regional input-output model with sub-national resolution for Galicia, north-west Spain, was used to study physical and value added trade balances between Galicia, the rest of Spain and the world. Within the framework of Ecologically Unequal Exchange theory, we argue that a region, such as Galicia, can play a twofold role as core and periphery in the global division of extractive activities. We show that Galicia is a sink, i.e. net importer of natural resources from middle- and low-income economies, and that the lower the income of the trade partner, the more raw material intensive the imports (measured as upstream kg per USD imported value added). However, this physical deficit is less accentuated than for the rest of Spain and Galicia's material footprint is significantly lower (~14.2 compared with ~24.5 t/capita). Moreover, Galicia is a source, i.e. net exporter of raw materials compared with more thriving European Union economies and, even for some key trade partners, such as Germany, UK and the rest of Spain, it is a net importer of value added.

India, Palm Oil, and Ecologically Unequal Exchange: A Cross-national Analysis of Forest Loss

Drawing on ecologically unequal exchange theory and previous research, we assess whether palm exports from low- and middle-income nations to India increase forest loss in exporting nations. Using ordinary least squares (OLS) regression for a sample of 91 low- and middle-income nations, we find support for our main hypothesis that palm exports sent from low- and middle-income nations to India are related to increased forest loss in the exporting nations. Our findings refine and expand upon ecologically unequal exchange theory by demonstrating that India, a middle-income nation, nevertheless is capable of positioning itself favorably in trading opportunities with other low- and middle-income nations. As India meets its needs for palm oil from abroad which is central to its economic growth and industrialization, their low- and middle-income trading partners bear more of the burden of environmental harms from the extraction and export of palm oil.

Labour Force Exploitation and Unequal Labour Exchange as the Root Cause of the Eurozone's Inequality

The cornerstone of this research is the development of a model which investigates the origins of economic inequality as a derivative of labour force exploitation. The starting point of this inquiry is the theory of unequal labour exchange. The concept being empirically analysed is that the phenomenon of unequal labour exchange between Eurozone countries, arising from exploitation on a national level, plays a key role in creating inequality. The findings indicate that the differences between the capital-labour force ratio and disequilibrium prices enhanced by various levels of economic efficiencies, explain the differences in exploitation rates and arising cross-country inequality.

Environmental Homogenization or Heterogenization? The Effects of Globalization on Carbon Dioxide Emissions, 1970–2014

Globalization significantly influences climate change. Ecological modernization theory and world polity theory suggest that globalization reduces carbon dioxide emissions worldwide by facilitating economic, political, social, and cultural homogenization, whereas ecological unequal exchange theory indicates that cumulative economic and political disparities lead to an uneven distribution of emissions in developed and less developed countries. This study addresses this controversy and systematically investigates the extent to which different dimensions of globalization influence carbon emissions in developed and less developed countries by treating globalization as a dynamic historical process involving economic, political, and social/cultural dimensions in a long-term, cross-national context. Drawing on data for 137 countries from 1970 to 2014, we find that while globalization, social and cultural globalization in particular, has enabled developed countries to significantly decrease their carbon emissions, it has led to more emissions in less developed countries, lending support to the ecological unequal exchange theory. Consistent with world polity theory, international political integration has contributed to carbon reductions over time. We highlight the internal tension between environmental conservation and degradation in a globalizing world and discuss the opportunities for less developed countries to reduce emissions.