Template-type: ReDIF-Paper 1.0
Author-Name: Porcile, Gabriel
Author-Email: jose.porcile@cepal.org
Author-Workplace-Name: ECLAC and UFPR
Author-Name: Sartorello Spinola, Danilo
Author-Email: sartorello@merit.unu.edu
Author-Workplace-Name: UNU-MERIT, Maastricht University
Author-Name: Yajima, Giuliano
Author-Email: giuliano.yajima@uniroma1.it
Author-Workplace-Name: Department of Social Sciences and Economics,
	 Sapienza University of Rome.
Title: Patterns of growth in structuralist models: The role of the
	 real exchange rate and industrial policy
Abstract:  This paper presents a Balance-of-payments (BOP)-constrained
	 growth model in which the interaction between the real exchange
	 rate (RER) policy and industrial policy result in the emergence
	 of different patterns of growth and income distribution.
	 The paper relies on cumulative causation à la Kaldor and
	 path-dependency to relate both types of policies. The transition
	 from one equilibrium level of the RER to a new equilibrium level
	 generates a process of learning that transforms the income
	 elasticity of exports and hence the BOP-constrained rate of growth
	 in the long run. The model produces a variety of outcomes that
	 help explain the contradictory results that emerge from the
	 empirical literature on the impact of the real exchange rate on
	 economic growth in the long run.
Classification-JEL: D50, O25, O33, O40, O41 
Keywords: Real Exchange Rate, Structural Change, Growth models, Structuralist
	 models, Balance-of payments, BOP-constrained growth, Industrial policy
Series: UNU-MERIT Working Papers
Creation-Date: 20200608
Number: 2020-027
File-URL: https://unu-merit.nl/publications/wppdf/2020/wp2020-027.pdf
File-Format: application/pdf
File-Size: 275 Kb
Handle: RePEc:unm:unumer:2020027