New directions in Latin American Structuralism: a three-gap model of sustainable development

Gabriel Porcile (), José Eduardo Alatorre, Martín Cherkasky, Camila Gramkow and João Prates Romero ()
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José Eduardo Alatorre: N/A
Martín Cherkasky: N/A
Camila Gramkow: N/A

European Journal of Economics and Economic Policies: Intervention, 2023, vol. 20, issue 2, 266-281

Abstract: Sustainable development implies reducing the gap in GDP per capita between center and periphery, increasing equality and protecting the environment. In this paper, we present a simple model within the Structuralist tradition that combines these three dimensions of sustainable development. We define three rates of growth: the minimum required to reduce inequality and eradicate poverty (yS); the maximum compatible with external equilibrium (yT); and the maximum compatible with a global carbon budget (yL). Estimations of these rates of growth for Latin America suggest that yS>yT>yL. We argue that a combination of industrial and technological policies, along with a major effort at income redistribution, is necessary for having yS=yT=yL, which defines a sustainable development path.

Keywords: sustainable development; Latin American Structuralism; growth and distribution (search for similar items in EconPapers)
JEL-codes: F63 O14 O44 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:elg:ejeepi:v:20:y:2023:i:2:p266-281

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