External Vulnerability and Development Prebisch’s Contributions to Economic Thought

Abstract

This paper shows how the ideas of Raúl Prebisch, from his early analysis of the Argentine business cycle to his in-depth view of the structural conditioning factors of growth in peripheral countries, have been guided by comprehensiveness and historical perspective. These two principles have been combined in the conceptualization of the center-periphery system, which stands out as the cornerstone of his thought. When reconstructing his contributions, characterized by a remarkable continuity, some lesser-known concepts are highlighted, such as his explanation of how the gold standard operated and the anticipation of balance of payments-constrained growth models. In addition to being a milestone in the history of economic thought and an important reference for the economic history of Latin America, Prebisch’s work stands out for its current relevance.

JEL classification: O11 ; F32 ; F43 ; B22 ; N16