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Latin America at a Crossroads: Controversies on Growth, Income Distribution and Structural Change

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  • Aguiar de Medeiros, Carlos

    (Institute of Economics, UFRJ)

  • Trebat, Nicholas

    (Institute of Economics, UFRJ)

Abstract

This paper discusses the connections established in recent non–neoclassical literature between growth, structural change and income distribution in large developing econo-mies. We argue that though many analyses have the merit of reintroducing income distribution as a factor in economic growth, they rely almost exclusively on macroeconomic theory, and thus ignore the structural changes that have taken place in recent decades and the ways in which structural aspects of an economy (such as resource availability, market size and geopolitical factors) affect policy options and growth. We argue that Latin American countries today face the same challenge that has constrained their development trajectory historically: to diversify their economic structure through new technological capabilities and greater equality and social progress.

Suggested Citation

  • Aguiar de Medeiros, Carlos & Trebat, Nicholas, 2016. "Latin America at a Crossroads: Controversies on Growth, Income Distribution and Structural Change," Centro Sraffa Working Papers CSWP22, Centro di Ricerche e Documentazione "Piero Sraffa".
    • Handle: RePEc:ris:sraffa:0022
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    Cited by:

    1. Eduardo F Bastian & Mark Setterfield, 2020. "Nominal exchange rate shocks and inflation in an open economy: towards a structuralist inflation targeting agenda," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 44(6), pages 1271-1299.

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    More about this item

    Keywords

    Structuralism; profit–led; devaluation; New Developmentalism;
    All these keywords.

    JEL classification:

    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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