A north-south model of economic growth, technological gap, structural change and real exchange rate

• Autor(a) principal: RateLuciano Ferreira Gabriela
• Data de Publicação: 2016
• Outros Autores: Frederico Gonzaga Jayme Jr, José Luís Oreiro
• Tipo de documento: Artigo
• Idioma: eng
• Título da fonte: Repositório Institucional da UFMG
• Texto Completo: http://dx.doi.org/10.1016/j.strueco.2016.03.003; http://hdl.handle.net/1843/42553
• topic: Exports and real exchange rate; Technology; Economic growth; Desenvolvimento econômico; Economia; Câmbio

The aim of this work is to present a model of economic growth, technological gap, structuralchange and real exchange rate in a formal and theoretical manner, explicitly incorporat-ing the effects of North–South technology gap and the real exchange rate (RER) at a levelcompatible with its “industrial equilibrium” taking in account the external constraint. Inthe short term, an increase in the South growth rate of the demand implies that its naturalgrowth rate must also rise, i.e., the level of industry participation and economic productiv-ity should also increase. In the long run the effect of RER on economic growth is conditionalon the size of the technological gap and the level of industry participation in South grossdomestic product. This condition generates two different dynamics such as a saddle pathand multiple equilibriums. To a large extent these results are achieved from the modelcomplex dynamics.