A formal assessment of new-developmentalist theory and policy

Bibliographic Data

ID4866494
AuthorsAriel Dvoskin (0000-0001-6603-6012, National University of General San Martín), Gerald D Feldman (0000-0003-1334-0103, National University of General San Martín), Germán David Feldman
Year2018
Volume38
Issue3
Pages395-413
Publication date2018-09-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueBrazilian Journal of Political Economy (JOURNAL)
Journal identifiersISSN: 0101-3157 • E-ISSN: 1809-4538
PublisherFapUNIFESP (SciELO) (PUBLISHER)
DOI10.1590/0101-35172018-2892
OpenAlexW3124486594
SCIELO_PIDS0101-31572018000300395
LanguageEN
Citations received7
References cited11

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 growth. 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; f) 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

Depreciation (economics · Differential (mechanical device · Distributive property · Economic rent · Economics · Exchange rate · Labour economics · Microeconomics · Monetary economics · Production (economics · Profit (economics · Profitability index · Wage · Economic Growth and Productivity · Economic theories and models · Economic Theory and Policy

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