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A model of development with structural and technological change

Author

Listed:
  • João Romero

    (Land Economy Department)

  • Gustavo Britto

    (Cedeplar-UFMG)

  • Frederico Jayme Jr.

    (Cedeplar-UFMG)

Abstract

The paper proposes a new model of development to describe a process of structural change of a dual economy. By introducing a novel sectoral division of the economic system into a low and a high-tech sector, the model builds on previous formulations and formalizes both a structure and a process of development which encompassing simultaneously the four main constraints to development found in the literature: structural heterogeneity, low capacity to investment and to innovate, balance of payments constraints, and income inequality. In doing so, the construction integrates different strands of the economic literature concerned with development and growth.

Suggested Citation

  • João Romero & Gustavo Britto & Frederico Jayme Jr., 2013. "A model of development with structural and technological change," Textos para Discussão Cedeplar-UFMG 479, Cedeplar, Universidade Federal de Minas Gerais.
    • Handle: RePEc:cdp:texdis:td479
    as

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    File URL: https://www.cedeplar.ufmg.br/pesquisas/td/TD%20479.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Dual economies; balance-of-payments constrained growth; income distribution; structural change.;
    All these keywords.

    JEL classification:

    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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