Gerald M. Meier

Economic Development and the Transfer Mechanism: Canada, 1895–1913

Among the several inductive studies of the international transfer mechanism, Professor Viners investigation of Canadas foreign borrowings in the period 1900–13 has provided the most convincing substantiation of the classical price-specie-flow mechanism. Yet, on the theoretical level, the neo-Keynesian theory of international trade now makes it difficult to accept the classical view of the transfer process as a complete explanation. And, on the empirical level, the availability of more comprehensive statistics and further research in Canadas economic history now allow us to understand in greater detail the forces of economic growth which were particularly strong in Canada during the years of foreign borrowing. Should we not therefore attempt to supplement Professor Viners study by recognizing the relevance of income analysis and the historical context of economic development? To place Professor Viners study in this wider frame of analysis is the objective of this paper. Section one briefly recalls the conclusions of Professor Viners investigation. The second section establishes some significant features of Canadas economic development, while the final section relates these features to the operation of the transfer mechanism and revises Professor Viners interpretation.

The Old and New Export Pessimism: A Critical Survey

The very success of the East Asian NICs (newly industrialising countries) has, ironically, evoked a new export pessimism. This paper sorts out the arguments underlying this pessimism and evaluates their credibility.1 The discussion moves from a summary of the old export pessimism and the results of import substitution (Section 1), to the case for export promotion (Section 2), and to an evaluation of the new export pessimism (Section 3).

The Future in Perspective

Even though the subject of this book cannot be encapsulated in a set of neat conclusions, this final chapter does summarize some of the ways in which classical economics remains relevant for development economics, examines the present state of the subject, and attempts to place future research in perspective.

Leading Issues in Economic Development

Since 1964, Leading Issues in Economic Development has been a market leading undergraduate development textbook. Reviewers praise the new edition for its explanation of theories and its wide range of references to authors, international organisations and web sites.