Vol. 44 No. 4 (2024)
How to Cite
Harrod-Domar Dilemma, Thirlwall’s Law and Green New Developmentalism
Abstract
The article aims to address the ecological transition into a model that integrates
the Harrod-Domar Dilemma and the New Developmentalism according to a Green New Developmentalism
perspective. To this end, this paper focuses on the green sides of the middleincome
countries’ traps by introducing a novel concept of the ecologically sustainable output
growth rate into the new developmentalism model developed by Oreiro (2023) to identify a
balanced ecological growth path. Compensating for the price competitiveness losses produced by the exchange rate over-valuation, Ecological Structural Change and green finance
allow for reversing the process of premature de-industrialization by improving the competitiveness
of the manufacturing sector.
JEL Classification: E12; Q56; Q57; O11; O44.
Keywords: Green New Developmentalism ecological structural change Harrod-Domar dilemma Thirlwall’s law