A model of North-South trade is developed in which TNCs invest in the South to produce a good competing directly with the Northern good. It implies that the liberalization of direct foreign investment to the South increases the long-run equilibrium rate of both Northern and Southern growth....

Mainstream macroeconomic theory, especially as synthesized in the New Neoclassical Synthesis, is argued to have many problematic aspects, problems which have been especially underscored by the recent economic crisis, and which relate to its method, its views of the economy, and its goals and its...