Growth is endogenous in small open economies with substantial hidden or open unemployment, even under constant returns … to scale. Growth promoting policies, however, have implications for the balance of trade, and two instruments are needed … in order to achieve targets for both the growth rate and the balance of trade. The real exchange rate can serve as one of …

growth model. Policy-induced increases in banks' willingness and ability to lend result in new consumer lending, boosting …

primary driving forces, sector-biased productivity growth and sectoral trade integration. We calibrate the model to the same … countries used to document our patterns. We find that sector-biased productivity growth is important for deindustrialization by …

-economy model with endogenous productivity growth, demand driven output and income distribution as an important determinant of … equilibria for output, productivity and employment growth rates in the formal sector. In the long-run, the model allows for … multiple equilibria which can describe cases of (a) underdevelopment and structural heterogeneity or (b) sustained growth and …

-known regularities in all of growth and development economics. Yet there is less than complete agreement on the nature of that … association. Here we identify two waves of service sector growth, a first wave in countries with relatively low levels of per …

Growth in low-income developing economies with large sectors charac- terized by underemployment is unlikely to be wage … boost long-run growth. Some of the fast growing Asian economies may have been examples of wage-led growth in this rather … faster wage and output growth across the economy. …

Evidence regarding the relationship between distribution, demand, and growth in the short run has been mixed. Open … economy models that create the possibility of "beggar-thy-neighbor" growth offer one theoretical explanation for why this may … be expected. Several authors have argued recently, however, that even if demand and growth are profit-led in many …

Pervasive credit constraints have been seen as major sources of slow growth in developing economies. This paper … clarifies a mechanism through which an inefficient financial system can reduce productivity growth. Using a two-sector model … decisions take center stage in the Keynesian version. We find that, although boosting the asymptotic rate of growth, a …

industrialization and, thereby, their take-off to a state of sustained economic growth. The theory contributes to the understanding of …