Restrição externa, câmbio e crescimento em um modelo com progresso técnico endógeno

The aim of this paper is to present some preliminary considerations of the relationship between exchange rates, external constraints and economic growth from a formal model that considers two regions, one developed and other developing countries, which interact via international trade. It is assumed that the external constraint acts on the developing economy and that it is affected by exchange rate policies, to the extent that changes in these policies affect the functional distribution of income and, therefore, the decisions of the planned spending on business innovation. The findings go to show that devaluations have a positive effect to relax the external constraint in this region.