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Texto para discussão 08/2010

Keynesian and schumpeterian efficiency in a BOP-constrained growth model
Eva Catela*, Gabriel Porcile**

The paper aims to contribute to the debate on specialization and growth in two forms. Firstly, it develops a North-South model in which the ratio between the income elasticity of exports and imports in the South (that gives the rate of growth compatible with external equilibrium) depends on the Keynesian and Schumpeterian efficiency of the pattern of specialization, as defined by Dosi et al (1990). The model draws on key insights of the technology gap literature to discuss how these efficiencies are related to the dynamics of technological learning. Secondly, the model is tested including the variables Keynesian and Schumpeterian efficiency in a Keynesian growth regression. Several estimation procedures are used to test the model, among which Finite Mixture Estimation, which allows for estimating the parameters for homogenous groups of countries.

Keywords: schumpeterian efficiency; keynesian efficiency; balance-of-payments-constrained growth; Thirlwall's Law.

JEL: O11, O33

* Professor at the Department of Economics, Universidade Federal de Santa Catarina (UFSC).
** Professor at the Department of Economics, Universidade Federal do Paraná (UFPR), and researcher at The National Council for Scientific and Technological Development (CNPq).

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