Can growth be wage-led in small open developing economies?

Jaime Ros
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Jaime Ros: National Autonomous University of Mexico (UNAM), Mexico City, Mexico and University of Notre Dame, IN, USA

Review of Keynesian Economics, 2016, vol. 4, issue 4, 450-457

Abstract: This paper investigates the conditions under which wage-led and profit-led growth can take place in a small open developing economy. It presents a model in which three sectors coexist: a capital-intensive tradables sector, a capital-intensive modern non-tradables sector and a labor-intensive traditional or non-capitalist sector producing non-tradable services. The analysis highlights the role and importance of the modern non-tradables sector in the economy (banking and insurance, construction, water, gas, electricity, transport, and communications), showing to what extent the presence of this sector modifies the conditions for wage-led and profit-led growth.

Keywords: small open economy; growth and distribution; tradables and non-tradables sector (search for similar items in EconPapers)
JEL-codes: E12 E24 E26 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:elg:rokejn:v:4:y:2016:i:4:p450-457

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