In this paper we introduce investment specific technical progress into Pasinetti’s model of structural change. Our aim is to assess effects of embodied technical progress on structural change. Our findings suggest that despite the fact that this type of technical progress increases the...

In this paper it is shown that once-for-all variations in the level of the exchange rate may play an important role in the sectoral composition of the economy and this fact has important implications in terms of a disaggregated version of the Thirlwall’s law even if the argument of the...

This paper seeks to establish that a Structural Economic Dynamic (SED) approach toward understanding the Import Substitution Strategy (ISS) offers a superior method relative to the Neoclassical approach. It is argued that the latter fails to fully account for the role of demand and hence, the...

In this paper we intend to study some mechanisms that block a rapid diffusion of technological progress from advanced to underdeveloped countries. In order to accomplish this task we focus on two approaches that challenge the view that technological gaps between rich and poor nations are...

This paper seeks to establish that a Structural Economic Dynamic (SED) approach toward understanding technological gaps offers a superior method relative to the Import Substitution Strategy (ISS). It is argued that the ISS approach fails to account for the role of demand and hence, the...