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Patterns of specialization, technological hiatus and foreign-exchange constrained growth

Abstract

This paper presents a North-South model on the interaction between foreign trade and foreign-exchange constrained growth, a model in which patterns of specialization associated to production structures of the economies play a crucial role. Economic growth is conditioned by sector dynamics of innovation and imitation, as well as by income-elasticities and price-elasticities.

Keywords:
Economic growth; North-South trade; patterns of specialization

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