STRUGGLE FOR THE SURPLUS: JAMAİCA, 1970-84

Date

1989

Author

DANIELSON, Anders

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The paper develops an empirically meaningful definiıion of surplus' and calculates the sectoral surplus in Jamaica for the period 1970-84. It is found (1) that the size of the surplus varies be- tween sectors; (2) that the distribution of the surplus varies between sectors: and (3) that the 'quasi-capital goods sector' and the con- sumption goods sector appear to be discriminated against, despite a consistent emphasis on import substitution policies. On the busis of the results stated above, it is concluded in the paper (1) that part of the revenue collected from taxing the quasi-capital goods sector has been used to finance the import substitution policy aimed at expand- ing output and employment in the manufacturing sector: (2) the manufacturing sector has been the subjcct of increasing tax rates the revenues from which have been used to finance an expansion of services, in particular those undcr govemment auspices. A general conclusion of the paper is thus that import substitution policies in Jamaica have not aimed at expanding the manufacturing sector per se. but rather expanding sectors characterised by low costs of surplus extraction. Hence. the theory of sectoral clashes, fonvarded by Markos Mamalakis some two decades ago. seems to be rclcvant for explaining the pattern of surplus extraction in Jamaica.

URI

https://hdl.handle.net/11511/111473

Collections

Department of Economics, Article