ABSTRACT
In the last chapter, Rubinson presented data supporting the thesis that income inequality within states is a function of the operation of the world system. In the years immediately preceding and following the publication of Rubinson’s study a series of studies were published attempting to test dependency and world-system perspectives with respect to their predictions regarding the gap between rich and poor. In this chapter, the authors summarize much of that research and find strong support for the proposition that dependency (in the form of foreign investment and aid) increases income inequality. The evidence with respect to the impact of dependency on economic growth is found to be equivocal, however. The authors therefore proceed to examine the possible causes of the variations in findings and conduct their own analysis, which leads them to the conclusion that dependency slows growth over the long term. In sum, the research reported here makes a strong case that both of the gaps this book is focused on are products of dependency and the operation of the world capitalist system.
