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Structural change, an open economy and employment: A structural change and economic dynamics approach

Author

Listed:
  • Rafael De Acypreste

    (Department of Economics, University of Brasília and FACE – UnB, Asa Norte, Brasília-DF, Brazil)

  • Joao Gabriel De Araujo Oliveira

    (Department of Economics, University of Brasília and FACE – UnB, Asa Norte, Brasília-DF, Brazil)

Abstract

The main objective of this paper is to analyse the effects of international trade on employment, focusing particularly on the case where domestic prices are higher than foreign prices, using Pasinetti's (1981 and 1993) framework as the basic structure of analysis. It is shown that technological progress affects employment levels through the Kaldor-Verdoorn law by endogenizing productivity growth when national prices are competitive. We conclude that high imports negatively affect employment levels, supporting heterodox views regarding trade openness.

Suggested Citation

  • Rafael De Acypreste & Joao Gabriel De Araujo Oliveira, 2022. "Structural change, an open economy and employment: A structural change and economic dynamics approach," PSL Quarterly Review, Economia civile, vol. 75(300), pages 47-62.
    • Handle: RePEc:psl:pslqrr:2022:14
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    File URL: https://rosa.uniroma1.it/rosa04/psl_quarterly_review/article/view/17551/16829
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    More about this item

    Keywords

    structural change; open economy; cumulative causation; employment;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure

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