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Economic Integration, Sectoral Diversification, and Exchange Rate Policy in a Developing Economy, Gabriel Srour

The paper develops a simple three-sector model of a developing country with nominal wage rigidity, in which one sector is thought of as the primary sector and the other two are sectors in which the country can diversify. The paper then analyzes the relationship between the market structure of the nonprimary sectors and equilibrium adjustments to shocks in the primary sector. In particular, the paper examines under what conditions the country should promote one nonprimary sector over another. Among other things, it argues that developing countries should promote those sectors that are more integrated with the outside world
Table Of Contents
""Contents""; ""I. INTRODUCTION""; ""II. THE BASELINE MODEL""; ""A. Households""; ""B. Production""; ""C. Price and Wage Setting""; ""D. Long-Run Shares of Trade""; ""III. EQUILIBRIUM""; ""A. Flexible Wages""; ""B. Predetermined Wages""; ""IV. ALL PRICES EXOGENOUSLY GIVEN""; ""V. PRICES OF HOME-PRODUCED NONPRIMARY GOODS ENDOGENOUS""; ""VI. CONCLUSION""; ""DETAILED DERIVATION OF THE EQUILIBRIUM""; ""A. All Prices Exogenously Given""; ""B. Prices of Home-Produced Nonprimary Goods Endogenous""; ""REFERENCES""
Literary Form
non fiction
Description based upon print version of record
Physical Description
1 online resource (32 p.)
Specific Material Designation
Form Of Item

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