In this paper we examine the role played by environmental externalities in shaping the dynamics of an economy with two sectors (a farming sector and an industrial one), free inter-sectoral labor mobility and heterogeneous agents (workers/farmers and industrial entrepreneurs). We find that, in...

The way in which natural and physical capital are accumulated, distributed and harnessed underpins the functioning and sustainability of the productive system of each society as well as its social stratification. Significant changes in the interactions between natural and physical capital...

The purpose of this paper is to consider environmental taxation which would control emissions of firms in a model of growth cycles. In the model presented below, the economy may experience two phases of growth and environmental quality: “the no-innovation growth regime” and “the...

As increasingly obvious signs tell us that the natural environment is changing abruptly and, unfortunately, noticeably, the natural resources are increasingly depleted but have to support a growing population, strategies for the sustainable development of the society will have to be implemented,...

El activo público más importante para el crecimiento económico colombiano ha sido la diversificación de la industria manufacturera. Los gobiernos que han promovido este y otros activos productivos (especialmente la infraestructura de transportes, el derecho a la propiedad y la acumulación...

Recent empirical studies have found a robust correlation between competitive exchange rates and economic growth in developing economies. This paper presents (i) a formal model to help explain these findings and (ii) econometric evidence on the relation between investment and the real exchange...

Constructing an open economy Lewisian growthmodel withth ree sectors, we analyze the relationship between economic growth and the level of absolute prices. We show that the absolute price level will not increase until the economy reaches the Lewisian turning point. In addition, we show that in...

A recent wave of economic research has studied the transformation of China from a poor country in the 1970s to a middle-income economy today. Based on this literature, we discuss the factors driving China’s development process. We provide a historical account of China’s rise, fall, and...

Unlike in Asia, the manufacturing sector has not (yet) become a driver of structural change in Africa. One common explanation is that the natural resource-focus of many African economies leads to Dutch disease effects. To test this argument for the case of newly found oil in Ghana we develop a...

To encourage economic growth in a developing economy, higher agricultural productivity has been believed to enhance the manufacturing sector's development, which provides the transition into industrialization. Although this positive linkage between agricultural productivity and economic growth...