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Structural change and unbalanced economic growth in open developing economies

Author

Listed:
  • Anirban Sengupta

    (Indian Institute of Management-Bodhgaya)

  • Subhasankar Chattopadhyay

    (Indian Institute of Management-Indore)

  • Apostolos Serletis

    (University of Calgary)

Abstract

In this paper we study the impact of international capital flows on the real exchange rate and sector allocation of labour and capital in open developing economies having demand side asymmetries (non-homothetic preferences) and supply side asymmetries (differences in capital intensities and productivity growth rates across sectors). We propose new channels, namely structural change and unbalanced growth, through which international capital flows can cause real exchange rate changes and sector reallocations of capital and labor in open developing economies.

Suggested Citation

  • Anirban Sengupta & Subhasankar Chattopadhyay & Apostolos Serletis, 2023. "Structural change and unbalanced economic growth in open developing economies," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 47(4), pages 844-858, December.
    • Handle: RePEc:spr:jecfin:v:47:y:2023:i:4:d:10.1007_s12197-023-09630-1
    DOI: 10.1007/s12197-023-09630-1
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    References listed on IDEAS

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    More about this item

    Keywords

    Supply side asymmetries; Unbalanced economic growth; Structural change;
    All these keywords.

    JEL classification:

    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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