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A Pasinettian approach to international economic relations: the pure labor case


  • Ricardo Azevedo Araujo
  • Joanilio Rodolpho Teixeira


In this paper, the pure labor version of Pasinetti's model of structural change and economic dynamics is extended to consider international economic relations. The conditions for full employment, full expenditure of national income and trade balance equilibrium are established along with solutions for the systems of physical quantities and prices in an open economy. Analytical results concerning the benefits of international trade and learning are studied with formal rigor. Then static and dynamic aspects of the principle of comparative cost advantages are analyzed considering the determinants of the level of specialization and international prices.

Suggested Citation

  • Ricardo Azevedo Araujo & Joanilio Rodolpho Teixeira, 2004. "A Pasinettian approach to international economic relations: the pure labor case," Review of Political Economy, Taylor & Francis Journals, vol. 16(1), pages 117-129.
  • Handle: RePEc:taf:revpoe:v:16:y:2004:i:1:p:117-129 DOI: 10.1080/0953825032000145490

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    References listed on IDEAS

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    9. Dutt, Amitava Krishna, 1984. "Stagnation, Income Distribution and Monopoly Power," Cambridge Journal of Economics, Oxford University Press, vol. 8(1), pages 25-40, March.
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    Cited by:

    1. repec:eee:streco:v:42:y:2017:i:c:p:67-75 is not listed on IDEAS
    2. Gianpaolo Mariutti, 2007. "Production of commodities by means of labour. A theory of international relations," Working Papers 44/2007, University of Verona, Department of Economics.
    3. Araujo, Ricardo Azevedo, 2011. "New insights from a structural economic dynamic approach to balance of payments constrained growth," MPRA Paper 30332, University Library of Munich, Germany.
    4. Ricardo Azevedo Araujo & JoanÌlio Rodolpho Teixeira, 2003. "An Extension of the Structural Change Model to International Economic Relations," Metroeconomica, Wiley Blackwell, vol. 54(4), pages 458-473, November.
    5. Araujo, Ricardo Azevedo & Trigg, Andrew B., 2015. "A neo-Kaldorian approach to structural economic dynamics," Structural Change and Economic Dynamics, Elsevier, vol. 33(C), pages 25-36.
    6. Freire Junior, Clovis, 2017. "Economic diversification: Explaining the pattern of diversification in the global economy and its implications for fostering diversification in poorer countries," MERIT Working Papers 033, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

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