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This document presents a general equilibrium macro model to analyze the effects of export-led growth policies on the terms of trade and domestic distribution in a developing region with abundant labor, referred to as the South. It demonstrates that an increase in exports from the South can lead to a decline in its terms of trade and purchasing power, particularly under conditions of dualism and abundant labor supply. The findings emphasize the need for coordinated domestic and international policies that co

Author

iliaerrosara

Language

EN