THIRLWALL’S LAW AND NEW-DEVELOPMENTALISM: WHAT ARE THE LIMITS FOR LONG-RUN GROWTH?

The aim of this article is to argue that New-Developmentalism —understood as an approach to the deep determinants of economic development in which macroeconomic policy regime has a key role in explaining the long-term growth differentials among countries, notably middle-income countries— is not inco...

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Detalles Bibliográficos
Autor: Oreiro, José Luis
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2023
País:México
Institución:UNIVERSIDAD NACIONAL AUTÓNOMA DE MÉXICO
Repositorio:Investigación Económica
Idioma:español
OAI Identifier:oai:ojs.pkp.sfu.ca:article/86496
Acceso en línea:https://www.revistas.unam.mx/index.php/rie/article/view/86496
Access Level:acceso abierto
Palabra clave:Anthony Thirlwall
economic growth
real exchange rate
structural change
Descripción
Sumario:The aim of this article is to argue that New-Developmentalism —understood as an approach to the deep determinants of economic development in which macroeconomic policy regime has a key role in explaining the long-term growth differentials among countries, notably middle-income countries— is not incompatible with Balance of Payments Constrained Growth models pioneered and developed by Professor Thirlwall, but can be considered an extension and improvement of such a class of models in order to incorporate structural change induced by exchange rate overvaluation as the main limit of long-run growth for middle-income dual economies, thereby explaining the so-called middle-income trap.