Cásares, Enrique R. - In: Estudios de economía 34 (2007) 1, pp. 21-35
We develop an endogenous growth model with three goods, exportable, importable and non-tradable. We study the response of the real exchange rate and of the economy growth rate to a decrease in the tariff rate. We show that trade liberalization must be followed by a depreciation of the real...
