Gabriel Porcile () (Department of Economics, Universidade Federal do Paraná) Guilherme R. S. Souza e Silva () Mario Cimoli () (Division of Production, Productivity and Management, ECLAC and University of Venice)
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This paper discusses some of the structuralist ideas about international coordination and growth in an international system formed by countries whose productive structures and technological capabilities are strongly asymmetric. These ideas are formalized taking as a point of departure the Keynesian Balance-of-Payments constrained growth model with two countries. To this model is added a function (based on the catching up literature) in which the income elasticity of the demand for exports and imports depends on the technology gap. The model allows for discussing the inter-relations between the fiscal and the industrial and technological policies. It also allows for finding the rate of growth of autonomous expenditure in the periphery which ensures that it will use all the foreign exchange it earns in promoting economic growth (the principle of “automatic reciprocity”).
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Publisher Info
Paper provided by Universidade Federal do Paraná, Department of Economics in its series Working Papers with number
0085.
Length: 15 pages Date of creation: 2009 Date of revision: Handle: RePEc:fup:wpaper:0085
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