The real exchange rate matters, but why? A new developmentalist assessment
New Developmentalism doctrine defends the central role played by acompetitive real exchange rate in promoting catch-up in developing economies. Recently,this theory has been questioned by critics; the main criticism has been that an outwardgrowth strategy based on a competitive real exchange rate wo...
| Autores: | , |
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| Formato: | artículo |
| Estado: | Versión publicada |
| Fecha de publicación: | 2023 |
| País: | Brasil |
| Recursos: | EDITORA 34 |
| Repositorio: | Revista de Economia Política |
| Idioma: | inglés |
| OAI Identifier: | oai:ojs2.centrodeeconomiapolitica.org:article/2430 |
| Acesso em linha: | https://centrodeeconomiapolitica.org.br/repojs/index.php/journal/article/view/2430 |
| Access Level: | acceso abierto |
| Palavra-chave: | Real exchange rate economic development new developmentalism Taxa de câmbio real desenvolvimento econômico novo desenvolvimentismo |
| Resumo: | New Developmentalism doctrine defends the central role played by acompetitive real exchange rate in promoting catch-up in developing economies. Recently,this theory has been questioned by critics; the main criticism has been that an outwardgrowth strategy based on a competitive real exchange rate would harm income/real wagedistribution and have a negative effect on the economy. This study discusses how the realexchange rate influences growth in light of the new developmentalist doctrine and the contrasting experiences of Asian and Latin American countries. Its main contribution isto document the influence of the real exchange rate on economic performance, specificallythrough certain transmission channels. The article’s findings suggest that a competitiveRER is an important aspect in a country’s growth path, insofar as it favors profits, capitalaccumulation, net exports, and gains in social capabilities. JEL Classification: O1; O11; O19. |
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