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Fahd Bc @fahdbc.bsky.social · 25/12/2025

Our research shows that the profitability effects of unequal exchange are driven mainly by increases in the rate of surplus value, with comparatively weaker effects on the organic composition of capital, pointing to international exploitation rather than capital deepening. (13/n)

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Fahd Bc @fahdbc.bsky.social · 25/12/2025

We estimate that unequal exchange accounts for around 34% of the shortfall in growth convergence between rich and poor countries during 2000–2014. (11/n)

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Fahd Bc @fahdbc.bsky.social · 25/12/2025

The impact of unequal exchange on the rate of profit is central to our explanation of international divergence. From a Marxian perspective, long-run growth differences are mediated by accumulation, which in turn is governed by profitability(the so-called Cambridge Equation)(9/n)

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Fahd Bc @fahdbc.bsky.social · 25/12/2025

The main contribution of our paper lies in computing unequal exchange by measuring international differences between labour expended and labour commanded through trade, and in showing how these asymmetries systematically shape international profit-rate differentials. (8/n)

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Fahd Bc @fahdbc.bsky.social · 25/12/2025

Consistent with Marx’s treatment of the value of labour-power as exogenous, we assumed that cheap imports may increase the surplus-value rate, spurring in turn the profit rate. Then, UE may alter the profit rate in two ways. (7/n)

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Fahd Bc @fahdbc.bsky.social · 25/12/2025

In our latest research, we begin by discussing the importance of Marx's insight into the essential modification of the law of value, thereby connecting it to the role of foreign trade in counteracting the tendency of the profit rate to fall. (5/n)

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Fahd Bc @fahdbc.bsky.social · 25/12/2025

Marx’s claim that foreign trade operates as a counteracting factor must be read in conjunction with his argument that the law of value undergoes an essential modification on the world market: the periphery gives more objectified labour than it receives. (4/n)

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Fahd Bc @fahdbc.bsky.social · 23/12/2025

This is the first empirical application of second-generation panel cointegration techniques—accounting for cross-sectional dependence and slope heterogeneity—to test the relationship between sectoral REERs and VI-ULCs.

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Fahd Bc @fahdbc.bsky.social · 23/12/2025

On this basis, the central hypothesis is clear: sectoral real effective exchange rates (REERs) are governed in the long run by relative vertically integrated unit labour costs, not by purchasing power parity or comparative advantage.

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Fahd Bc @fahdbc.bsky.social · 23/12/2025

Following Smith and Shaikh, prices are decomposed into direct and indirect wages and profits. This decomposition allows us to derive vertically integrated unit labour costs as the key regulators of relative prices.

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Fahd Bc @fahdbc.bsky.social · 23/12/2025

This article begins with a classical insight: market prices and competitiveness are governed by real competition, as developed by Smith, Ricardo, and Marx and systematized by Anwar Shaikh.

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Fahd Bc @fahdbc.bsky.social · 23/12/2025

In my 2021 paper published in Structural Change and Economic Dynamics, we examined how sectoral real effective exchange rates are regulated by vertically integrated unit labour costs, based on the classical-Marxian political economy approach to real competition. www.sciencedirect.com/science/arti...

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Fahd Bc @fahdbc.bsky.social · 18/12/2025

Our 2025 article, Unequal exchange, profit rate and growth, represents the next step: moving from theoretical clarification to the identification of the dominant causal mechanisms. (8/n) journals.sagepub.com/doi/10.1177/...

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Fahd Bc @fahdbc.bsky.social · 18/12/2025

A deeper engagement with Marx’s theory of value, money, and competition led me to revise this view: Marx’s foreign trade theory is not grounded in unequal exchange, but in productivity, intensified labor, and absolute cost advantage. (6/n)

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Fahd Bc @fahdbc.bsky.social · 18/12/2025

I show that Marx offers a general theory of money that integrates value, surplus value, credit, and paper money—rejecting money neutrality, Say’s Law, and the quantity theory long before Keynes. (3/n)

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Fahd Bc @fahdbc.bsky.social · 18/12/2025

Marx’s value theory resolves the capital measurement problem: capital is not a physical quantity but a social relation expressed in money. This challenges both classical political economy and marginalist production functions. (2/n)

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Fahd Bc @fahdbc.bsky.social · 18/12/2025

In my article published in Critique (2021), I revisit Marx’s theoretical corpus through the lens of modern economics, arguing that Marx’s theory of value is fundamentally a monetary theory of production—one that anticipates Keynes by decades. (1/n) www.tandfonline.com/doi/abs/10.1...

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Fahd Bc @fahdbc.bsky.social · 04/12/2025

Assuming profit rates drive long-run accumulation, unequal exchange reduced global income convergence by 34% between 2000 and 2014. Without UE, the hypothetical growth rate in the periphery would be higher due to a higher profit rate. (10/n)

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Fahd Bc @fahdbc.bsky.social · 04/12/2025

The findings show that high-income countries consistently gain from unequal exchange — they command more world labour than they expend. Low-income countries lose—they provide more domestic labour than they receive in return. (6/n)

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Fahd Bc @fahdbc.bsky.social · 04/12/2025

Countries with different productivity levels, wage structures, and compositions of capital exchange goods that embody unequal amounts of labour, which impact profit rates and growth by cheapening or making more expensive both wage and capital goods. (4/n)

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Fahd Bc @fahdbc.bsky.social · 04/12/2025

Our latest research, entitled ‘Unequal exchange, profit rate and growth: An empirical estimation’, is now published in @economyandspace.bsky.social. It is the first attempt to estimate the effect of UE on profit rates and growth convergence. (1/n)

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Fahd Bc @fahdbc.bsky.social · 31/05/2025

Is it time to quit Academia.edu? Researchers and scholars aim to disseminate their work through web-based platforms such as Academia.edu or ResearchGate. However, Academia.edu is a platform that profits from research shared by academics who upload their work freely and without compensation.

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Fahd Bc @fahdbc.bsky.social · 29/05/2025

Thrilled to share my latest research, entitled "Re-examining the automation-employment nexus from a classical political economy approach", published in Structural Change and Economic Dynamics. Open Access. Comments and Critiques are welcome. www.sciencedirect.com/science/arti...

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