EconPapers    
Economics at your fingertips  
 

A North-South Model of Economic Growth, Technological Gap, Structural Change and Real Exchange Rate

Luciano Ferreira Gabriel, Frederico Jayme Jr () and José Luís Oreiro ()

Structural Change and Economic Dynamics, 2016, vol. 38, issue C, 83-94

Abstract: The aim of this work is to present a model of economic growth, technological gap, structural change and real exchange rate in a formal and theoretical manner, explicitly incorporating the effects of North–South technology gap and the real exchange rate (RER) at a level compatible with its “industrial equilibrium” taking in account the external constraint. In the short term, an increase in the South growth rate of the demand implies that its natural growth rate must also rise, i.e., the level of industry participation and economic productivity should also increase. In the long run the effect of RER on economic growth is conditional on the size of the technological gap and the level of industry participation in South gross domestic product. This condition generates two different dynamics such as a saddle path and multiple equilibriums. To a large extent these results are achieved from the model complex dynamics.

Keywords: Economic growth; Technology; Exports and real exchange rate (RER) (search for similar items in EconPapers)
JEL-codes: C22 E12 O11 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0954349X16000084
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:streco:v:38:y:2016:i:c:p:83-94

DOI: 10.1016/j.strueco.2016.03.003

Access Statistics for this article

Structural Change and Economic Dynamics is currently edited by F. Duchin, H. Hagemann, M. Landesmann, R. Scazzieri, A. Steenge and B. Verspagen

More articles in Structural Change and Economic Dynamics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

 
Page updated 2022-09-21
Handle: RePEc:eee:streco:v:38:y:2016:i:c:p:83-94