A Formal Assessment of New-Developmentalist Theory and Policy
We develop a formal framework that endogeneizes the productive structure of a small open peripheral economy as the outcome of a problem of technical choices. We subsequently examine the main theoretical theses and policy prescriptions of the New-Developmentalist approach to economic development. We argue that: a) not only does the pattern of specialization depend on technical conditions, but also on income distribution; b) in an economy without rents, the level of the money-wage nominal-exchange-rate ratio is univocally determined once the rate of profits is known, and shows an inverse relatio... Mehr ...
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Dokumenttyp: | Artikel |
Verlag/Hrsg.: |
Universitá degli Studi di Siena. Dipartimento di Economia Politica e Statistica
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Schlagwörter: | Distributive Conflict / Dutch Disease / Exchange Rate Policy / New-Developmentalism / Pattern of Specialization / https://purl.org/becyt/ford/5.2 / https://purl.org/becyt/ford/5 |
Sprache: | Englisch |
Permalink: | https://search.fid-benelux.de/Record/base-28977990 |
Datenquelle: | BASE; Originalkatalog |
Powered By: | BASE |
Link(s) : | http://hdl.handle.net/11336/73137 |
We develop a formal framework that endogeneizes the productive structure of a small open peripheral economy as the outcome of a problem of technical choices. We subsequently examine the main theoretical theses and policy prescriptions of the New-Developmentalist approach to economic development. We argue that: a) not only does the pattern of specialization depend on technical conditions, but also on income distribution; b) in an economy without rents, the level of the money-wage nominal-exchange-rate ratio is univocally determined once the rate of profits is known, and shows an inverse relationship with it; c) if differential rents are considered, the level of the rate of profits can be set independently of the money-wage exchange-rate ratio; d) the level of the exchange rate that ensures normal profitability of the primary sector need not coincide with the current-account equilibrium rate; e) the effective exchange rate need not gravitate around any of these two former levels, which must be rather seen as minimum thresholds of the effective rate; e) the unpleasant distributive consequences of exchange-rate depreciation can be partially avoided by means of export duties that do not raise primary-commodities production costs. ; Fil: Dvoskin, Ariel. Consejo Nacional de Investigaciones Científicas y Técnicas; Argentina. Universidad Nacional de San Martín. Instituto de Altos Estudios Sociales; Argentina ; Fil: Feldman, Germán David. Consejo Nacional de Investigaciones Científicas y Técnicas; Argentina. Universidad Nacional de San Martín. Instituto de Altos Estudios Sociales; Argentina