Much deeper and simpler: Pasinetti’s reassessment of Prebisch’s centre–periphery approach

Abstract

Pasinetti’s analysis of underdeveloped economies in his 1981 book reveals a striking similarity with Raul Prebisch´s well-known Centre-Periphery approach. Pasinetti´s reference to Prebisch’s work reinforces such a thesis. However, a careful comparative analysis also reveals these authors´ methodological and analytical differences. While Pasinetti´s work was situated in a pre-institutional (and logical-deductive) plane, Prebisch´s approach merged economic, historical and institutional data into an empirical analysis. In addition, Pasinetti drew on some very specific and homogenous sources (Leontief, Sraffa and Marx), whereas Prebisch revealed an eclectic attitude to economic literature. Such differences, however, did not imply different conclusions. On this level of the analysis, Pasinetti and Prebisch show a clear resemblance, emphasising the pivotal role of industrialisation for developing countries and the controversial role of international trade.