Industrial policy and exchange rate scepticism

Bresser-Pereira, Luiz Carlos; Rugitsky, Fernando

doi:10.1093/cje/bex004

Cited by 18 publications

(7 citation statements)

References 26 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Kaldor, for example, emphasized the importance of the exchange rate for manufacturing industries, which enjoy increasing returns: ‘The task of maintaining competitiveness through the choice of a favorable exchange rate is therefore of the highest importance to an industrial country from the point of view of its long‐run growth potential and not only on account of its short‐ or medium‐term effect on the level of employment’ (Kaldor, 1971: 8). For a review of earlier discussions of RER and industrial policy, see Bresser‐Pereira and Rugitsky (2018).…”

mentioning

confidence: 99%

The Real Exchange Rate and Development Theory, Evidence, Issues and Challenges

Demir

Razmi

2021

Journal of Economic Surveys

View full text Add to dashboard Cite

This paper surveys the theoretical and empirical literature on the effects of the real exchange rate (RER) on international trade, economic development and growth. We summarize the main conceptual issues, discuss the relevance of the RER as an instrument of development policy, provide an overview of the macroeconomic and microeconomic mechanisms that link the RER to trade and long run growth and development, analyze the challenges-especially the disconnect between theory and data-that often arise in empirical applications, and present new avenues for future research. In the process, we present some updated estimates and illustrative figures. The mechanisms through which the RER influences long-run growth and structural change outcomes remains a promising area of research and the relevance of individual channels in different contexts deserves much more careful investigation. Greater data availability should help fill some of these gaps in our understanding.

show abstract

mentioning

confidence: 99%

The Real Exchange Rate and Development Theory, Evidence, Issues and Challenges

Demir

Razmi

2021

Journal of Economic Surveys

View full text Add to dashboard Cite

show abstract

“…Up to 1970 they viewed the shortage of foreign capitals as a major obstacle to growth. When, after the 1973 first oil shock, the major international private banks resumed finance to Latin American countries, which was unavailable since the 1929 crash and the Great Depression, developmental economists in Brazil have commemorated the "good new".27 SeeBresser-Pereira and Rugitsky (2018). In this paper there are citations of Prebisch that show clearly this skepticism.Brazilian Journal of PoliticalEconomy 39 (2), 2019 • pp.…”

mentioning

confidence: 88%

From classical developmentalism and post-Keynesian macroeconomics to new developmentalism

Bresser-Pereira

2019

Brazil. J. Polit. Econ.

Self Cite

View full text Add to dashboard Cite

New developmentalism was a response to the inability of classical developmentalism and post-Keynesian macroeconomics in leading middle-income countries to resume growth. New developmentalism was born in the 2000s to explain why Latin American countries stopped growing in the 1980s, while East Asian countries continued to catch up. This paper compares new developmentalism with classical developmentalism, which didn’t have a macroeconomics, and with post-Keynesian economics, whose macroeconomics is not devoted to developing countries. And shows that to follow the East Asian example is not enough industrial policy, it is also necessary a macroeconomic policy that sets the five macroeconomic prices right, rejects the growth with foreign savings policy, and keeps the macroeconomic accounts balanced.

show abstract

“…To address export demand as a structural constraint, Kaldor proposed to promote industrial specialisation and export expansion using IP to increase competitiveness in sectors that would lead to a rise (decline) in the economy's income elasticity of exports (imports) (Toner 1999; see also Thirlwall, 2013). A sub-set of theories in the tradition of Brazilian New Developmentalism argues that IP to build capacity in sectors with high export growth potential needs to be supported by an exchange rate regime that makes domestic firms internationally competitive for a given technology or productivity gap, i. e. by an undervalued exchange rate (Bresser-Pereira and Rugitsky, 2018;Oreiro et al, 2020;Gabriel et al, 2020).…”

Section: The Possibilities Of and Limitations To Demand-side Policy I...mentioning

confidence: 99%

Demand-Growth in Support of Structural Change: Evidence from Nigeria's Formal Manufacturing Sector

Wolf¹

2022

SSRN Journal

View full text Add to dashboard Cite

Industrial policy and exchange rate scepticism

Cited by 18 publications

References 26 publications

The Real Exchange Rate and Development Theory, Evidence, Issues and Challenges

The Real Exchange Rate and Development Theory, Evidence, Issues and Challenges

From classical developmentalism and post-Keynesian macroeconomics to new developmentalism

Demand-Growth in Support of Structural Change: Evidence from Nigeria's Formal Manufacturing Sector

Contact Info

Product

Resources

About