Economic growth consequences of structural stagnation: A two-sector model of productive diversification
Fiche du document
2013
- handle: 10670/1.v3sud2
- 0120-2596
Ce document est lié à :
http://www.redalyc.org/revista.oa
Lecturas de Economía
Sujets proches
Economic growth Growth, Economic Development, EconomicCiter ce document
Carlos Humberto Ortiz, « Economic growth consequences of structural stagnation: A two-sector model of productive diversification », Lecturas de Economía, ID : 10670/1.v3sud2
Métriques
Partage / Export
Résumé
"Abstract: The role of manufacturing input diversification is addressed in a two-sector model of endogenous growth. The general economic equilibrium is solved for the world. It is also solved for a small country with scant capital accumulation, low input diversification and high agricultural productivity. In this set up, developed economies lead the world structural transformation and achieve increasing growth rates by carrying out processes of productive diversification. For each country, the model yields that specialization may enhance economic development if factor prices are internationally equalized. However, due to terms of trade deterioration, factor prices are lower in underdeveloped economies. Hence, specialization of the small country according to its comparative advantages –structural stagnation– generates an inferior path of economic development (lower income and slower growth)."