This report revisits the industrial and technological policy of two Latin American Economies (Argentina and Brazil) and two Asian economies (China and Korea) and discusses their implications for long run growth. To link the role of these policies to growth in a more rigorous way, it develops a North-South technology gap model which combines the […]
This paper analyzes the impact of international financial cycles on structural change in developing economies. It is argued that the impact of these cycles depend on the specific combination of macroeconomic and industrial policies adopted by the developing economy. The cases of Brazil and Argentina are contrasted with those of Korea and China. In the […]
This paper discusses the impact of financial cycles on the macroeconomic dynamics of developing economies. The main argument is that these cycles have a strong impact on key macroeconomic prices―in particular the real exchange rate―heightening external disequilibrium. The combination of an appreciated currency with subsequent external crises compromises investment, and therefore the accumulation of production […]
