dc.contributor.author
Olk, Christopher
dc.date.accessioned
2024-07-03T11:06:25Z
dc.date.available
2024-07-03T11:06:25Z
dc.identifier.uri
https://refubium.fu-berlin.de/handle/fub188/44084
dc.identifier.uri
http://dx.doi.org/10.17169/refubium-43794
dc.description.abstract
Asymmetric transfers of biophysical resources from the Global South to the North are a key obstacle to sustainable development. The underlying causal drivers of this ‘ecologically unequal exchange’ are not well understood. This paper accounts for the causal role of hierarchy between currencies as one driver of ecologically unequal exchange. Drawing on dependency theory, I propose testable hypotheses that explain why countries that issue internationally acceptable currencies create net inflows of embodied labour, land, energy, raw materials, and carbon from countries whose currencies lack international acceptability: Countries with lower-ranking currencies face higher interest rates, which constrain their policy space, drive income outflows, and necessitate resource exports. Such countries also tend to have lower price levels (measured as the ratio between exchange rates and purchasing power parity rates) because their currencies are not demanded internationally, resulting in reduced dollar income per exported resource. To test these hypotheses, I use a novel categorical operationalization of currency hierarchy. I compare different observable correlations to the theoretical correlations implied by the proposed hypotheses, and test multiple regression models against cross-country data. Overall, the results are consistent with the hypotheses. Considering alternative explanations, the conclusion seems justified that currency hierarchy is a significant driver of ecologically unequal exchange, and that this mechanism operates specifically through cross-country divergences in interest rates and exchange rates. In short, the monetary cost of a dollar impacts the biophysical cost of a dollar.
en
dc.format.extent
19 Seiten
dc.rights.uri
https://creativecommons.org/licenses/by-nc/4.0/
dc.subject
Currency hierarchy
en
dc.subject
Ecologically unequal exchange
en
dc.subject
Dependency theory
en
dc.subject
International monetary system
en
dc.subject
International political economy
en
dc.subject
Political ecology
en
dc.subject.ddc
300 Sozialwissenschaften::330 Wirtschaft::330 Wirtschaft
dc.title
How much a dollar cost: Currency hierarchy as a driver of ecologically unequal exchange
dc.type
Wissenschaftlicher Artikel
dcterms.bibliographicCitation.articlenumber
106649
dcterms.bibliographicCitation.doi
10.1016/j.worlddev.2024.106649
dcterms.bibliographicCitation.journaltitle
World Development
dcterms.bibliographicCitation.volume
180
dcterms.bibliographicCitation.url
https://doi.org/10.1016/j.worlddev.2024.106649
refubium.affiliation
Politik- und Sozialwissenschaften
refubium.affiliation.other
Otto-Suhr-Institut für Politikwissenschaft
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refubium.resourceType.isindependentpub
no
dcterms.accessRights.openaire
open access
dcterms.isPartOf.eissn
1873-5991
refubium.resourceType.provider
WoS-Alert