The aim of this paper is to show theoretically and empirically that undervalued real exchange rate has positive effects over economic growth on developing countries. We analyze the relationship between growth, exchange rate and productive heterogeneity by means of a Keynesian-Structuralist...

The hypothesis that in the long run only supply conditions can explain economic growth has been challenged by research that attaches a central role to demand conditions. In this case, there would be a feedback process in which productivity and labor supply would affect aggregate demand and this...

Developing countries have experienced important changes regarding trade and capital account policies in the past two decades. External liberalization may have important long-term effects on macroeconomic variables such as growth rates, employment, and the like. This paper explores a particular...