Economic Structure, International Income Differentials and Long-Run Growth
AbstractIn a well-known paper on the structure of development, Leontief (1963) showed that a country´s degree of economic development could be assessed by the relative completeness of its economic structure. This pattern of development is modelled in this paper. Within a context of international trade, and assuming that the world distribution of labor is given, the model yields that a sufficiently large differential between the economic structures of developed (Northern) and underdeveloped (Southern) economies induces Southern countries to accept lower prices for their basic goods and endure lower incomes. Economic diversification in the South is analysed as an outcome of technological imitation. The model yields that, even if technological knowledge is a public good, a minimum level of quality education is necessary for long-run growth to take place in the South.
How to Cite
Ortiz, C. H. (1). Economic Structure, International Income Differentials and Long-Run Growth. Economic Analysis Review, 17(1), 45-70. Retrieved from https://www.rae-ear.org/index.php/rae/article/view/14
Upon submission of an article, authors are asked to indicate their agreement to abide by an open-access license. The license permits any user to download, print out, extract, archive, and distribute the article, so long as appropriate credit is given to the authors of the work. The license ensures that your article will be as widely available as possible and that your article can be included in any scientific archive. Please read about the Creative Commons Attribution License before submitting your paper.
Except where otherwise noted, content on this site is licensed under a Creative Commons Attribution 3.0 License