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Câmbio, crescimento e heterogeneidade produtiva num modelo keynesiano-estruturalista


  • Fabrício Missio

    (UEMS and Cedeplar-UFMG)

  • José Luis Oreiro


  • Frederico G. Jayme Jr



The aim of this paper is to show theoretically and empirically that undervalued real exchange rate has positive effects over economic growth on developing countries. We analyze the relationship between growth, exchange rate and productive heterogeneity by means of a Keynesian-Structuralist model. We depart from the Bhaduri and Marglin model, which establishes a connection between accumulation regimes and growth. The standard model will be modified by means of the introduction of a non-linear function of capital accumulation in which investment is a quadratic function of real exchange rate. In this setting, changes in the real exchange rate can affect expenditure decisions of the firms, mainly the expenditure in innovation. Besides, following the work of Dosi, Pavitt and Soete, income elasticities of exports and imports 0will depend on real exchange rate. It is shown that a real exchange rate devaluation, by means of a reduction of real wages, will affect the level of productive heterogeneity of the economy. Finally, it is presented a long-run solution and some empirical evidences about the relation between real exchange rate and income elasticities of exports. The long-run solution finds multiple equilibrium, showing that a higher growth rate is possible only by means of a devaluate real exchange rate. The empirical results show a positive relation between income elasticity of exports and real exchange rate for all countries in the sample, which means that, independently of technological gap, devaluation of real exchange rate can increase long-run growth.

Suggested Citation

  • Fabrício Missio & José Luis Oreiro & Frederico G. Jayme Jr, 2010. "Câmbio, crescimento e heterogeneidade produtiva num modelo keynesiano-estruturalista," Textos para Discussão Cedeplar-UFMG td413, Cedeplar, Universidade Federal de Minas Gerais.
  • Handle: RePEc:cdp:texdis:td413

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    References listed on IDEAS

    1. Marco Crocco & Anderson Cavalcante & Cláudio Barra, 2006. "The behavior of liquidity preference of banks and public and regional development: the case of Brazil," Journal of Post Keynesian Economics, M.E. Sharpe, Inc., vol. 28(2), pages 217-240, January.
    2. Ross Levine, 1997. "Financial Development and Economic Growth: Views and Agenda," Journal of Economic Literature, American Economic Association, vol. 35(2), pages 688-726, June.
    3. Stiglitz, Joseph E, 1989. "Financial Markets and Development," Oxford Review of Economic Policy, Oxford University Press, vol. 5(4), pages 55-68, Winter.
    4. Almeida, Daniel B. de Castro & Jayme Jr., Frederico G., 2008. "Bank consolidation and credit concentration in Brazil (1995-2004)," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    5. Eduardo da Motta e Albuquerque, 2007. "Inadequacy of technology and innovation systems at the periphery," Cambridge Journal of Economics, Oxford University Press, vol. 31(5), pages 669-690, September.
    6. Sheila Dow & Carlos Rodriguez-Fuentes, 1997. "Regional Finance: A Survey," Regional Studies, Taylor & Francis Journals, vol. 31(9), pages 903-920.
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    Cited by:

    1. Fabrício J. Missio & Frederico G. Jayme Jr. & Gustavo Britto & José Luis Oreiro, 2015. "Real Exchange Rate and Economic Growth: New Empirical Evidence," Metroeconomica, Wiley Blackwell, vol. 66(4), pages 686-714, November.
    2. Fabrício Misso & Ricardo Araújo Azevedo & Frederico Jayme Jr, 2013. "An extended structural economic dynamics approach to balance-of-payments constrained growth: level of the real exchange rate and endogenous elasticities," Textos para Discussão Cedeplar-UFMG 499, Cedeplar, Universidade Federal de Minas Gerais.

    More about this item


    exchange rate; growth; multiple equilibria; keynesian; structuralist;

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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