, the external terms of trade, and productivity in the manufacturing sector. A once-and-for-all unit increase in the ratio …

, exports, and labour productivity, have lost prominence in explaining economic dynamics. We argue that, in the absence of … counterbalancing mechanisms, the combination of price-sensitive exports and the triggering effect of exports on productivity can enable … productivity growth - exacerbates macroeconomic disparities in terms of labour productivity. While nominal wages act as a potential …

We develop a general equilibrium model of an emerging market economy where productivity growth differentials between …