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Still Blowin’ in the Wind: Industrial Policy, Distorted Prices, and Implicit Reciprocity

Chapter

Abstract

Structuralist and evolutionary theories agree on the fact that one of the main challenges of development is diffusing technological progress, so as to change the pattern of specialization by incorporating new sectors and reducing inter-sectoral disparities, raising productivity levels and improving income distribution; then, once external constraints are overcome, faster growth will allow for a decline in unemployment and underemployment in the subsistence sector.

Keywords

Productivity Growth Fiscal Policy Real Exchange Rate Industrial Policy Technological Capability 
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