Does India's economy disprove dependency theory?

Question

In my History of the Americas class, we've recently been discussing Dependency Theory, which seems to be valid given the information I've seen. However, I have read that the recent economic development in India and other East Asian countries has disproved the dependency theory. Is this true? How do dependency theorists view this?

Answer 1

Market economists point to many examples they claim disprove dependency theory: the improvement of India's economy after it moved from state-controlled business to open trade is one of the most often cited. India's example seemingly contradicts dependency theorists' claims concerning comparative advantage and mobility, as much as its economic growth orignated from movements such as outsourcing - one of the most mobile forms of capital transfer.