@article{Dvoskin_Feldman_2018, title={A formal assessment of new-developmentalist theory and policy}, volume={38}, url={https://centrodeeconomiapolitica.org.br/repojs/index.php/journal/article/view/79}, DOI={10.1590/0101-3157-2018-2892}, abstractNote={<p>We develop a formal framework that endogeneizes the productive structure of a small open peripheral economy as the outcome of a problem of technical choices. We subsequently examine the main theoretical theses and policy prescriptions of the New-Developmentalist approach to economic growth. We argue that: a) not only does the pattern of specialization depend on technical conditions, but also on income distribution; b) in an economy without rents, the level of the money wage-nominal exchange rate ratio is univocally determined once the rate of profits is known, and shows an inverse relationship with it; c) if differential rents are considered, the level of the rate of profits can be set independently of the money wage-exchange rate ratio; d) the level of the exchange rate that ensures normal profitability of the primary sector need not coincide with the current-account equilibrium rate; e) the effective exchange rate need not gravitate around any of these two former levels, which must be rather seen as minimum thresholds of the effective rate; e) the unpleasant distributive consequences of exchange-rate depreciation can be partially avoided by means of export duties that do not raise primary-commodities production costs.&nbsp;</p> <p><strong>JEL Classification:</strong> B22; E11; F43.</p>}, number={3}, journal={Brazilian Journal of Political Economy}, author={Dvoskin, Ariel and Feldman, Germán David}, year={2018}, month={Jul.}, pages={395-413} }