IDEAS home Printed from https://ideas.repec.org/a/anp/econom/v17y20163291_309.html
   My bibliography  Save this article

Real exchange rate, technological catching up and spillovers in a balance-of-payments constrained growth model

Author

Listed:
  • Fabricio J. Missio

    (Universidade Federal de Minas Gerais, Brazil)

  • Luciano F. Gabriel

    (Universidade Federal de Minas Gerais, CEDEPLAR/UFMG, Brazil)

Abstract

The main objective of this work is to investigate the theoretical interrelationships between economic growth, the National Innovation System (NIS) and the real exchange rate (RER) in an export-led growth model. Formally, this work presents new changes in the Kaldor-Dixon-Thirlwall´?s model by the introduction of the RER, the NIS and a function that captures the endogeneity of productivity in the industrial sector. In the short term the equilibrium growth rate depends on the real exchange rate level and of the NIS development, which responds to the size of the technological gap, the public and private investments in R&D in relation to the output growth rate ratio and the absorption capacity for technological spillovers. In the long run, assuming the constancy of all exogenous variables, the convergence of the growth process depends on the output growth elasticity in relation to exports, the price elasticity of exports and the elasticity of productivity growth relative to output growth of the economy in general and to industry, in particular

Suggested Citation

  • Fabricio J. Missio & Luciano F. Gabriel, 2016. "Real exchange rate, technological catching up and spillovers in a balance-of-payments constrained growth model," Economia, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics], vol. 17(3), pages 291-309.
    • Handle: RePEc:anp:econom:v:17:y:2016:3:291_309
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1517758016300273
    Download Restriction: no
    File URL: http://ac.els-cdn.com/S1517758016300881/1-s2.0-S1517758016300881-main.pdf?_tid=3e4011a4-0f4c-11e7-b541-00000aacb361&acdnat=1490220759_4d723e4509b576f9b5f025133bee7d47
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Missio, Fabricio & Araujo, Ricardo Azevedo & Jayme, Frederico G., 2017. "Endogenous elasticities and the impact of the real exchange rate on structural economic dynamics," Structural Change and Economic Dynamics, Elsevier, vol. 42(C), pages 67-75.
    2. Munir Ahmad & Gul Jabeen & Syed Ahsan Ali Shah & Abdul Rehman & Fayyaz Ahmad & Cem Işik, 2022. "Assessing long- and short-run dynamic interplay among balance of trade, aggregate economic output, real exchange rate, and CO2 emissions in Pakistan," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(5), pages 7283-7323, May.

    More about this item

    Keywords

    Economic growth; Exports; Endogeneity of the international trade income elasticities and National Innovation System;
    All these keywords.

    JEL classification:

    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:anp:econom:v:17:y:2016:3:291_309. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Rodrigo Zadra Armond (email available below). General contact details of provider: https://edirc.repec.org/data/anpecea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.