The Third Development Decade of the United Nations opened with a promising outlook for the developing countries. The economic situation of the OECD countries had improved during 1979 and the "North-South dialogue" seemed to be making progress. But the further course of 1980 and the subsequent...

This paper analyzes a formal, dynamic model of the center-periphery problem. The model features falling relative demand for agricultural goods, a higher rate of technical change in manufacturing and a quality differentiated manufactured good. Income differences imply a potential for...