Casares, 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 exchange rate. We deduce that the growth rate of the economy increases …