Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/324115 
Year of Publication: 
2024
Citation: 
[Journal:] PSL Quarterly Review [ISSN:] 2037-3643 [Volume:] 77 [Issue:] 310 [Year:] 2024 [Pages:] 329-350
Publisher: 
Associazione Economia civile, Rome
Abstract: 
The objective of this paper is to revisit key themes of development literature in the light of novel emerging approaches. Applying complexity economic tools, evidence is presented to argue that, along the development trajectory of countries, a complexity increase, to be sustainable, must go hand in hand with a departure from their productive historical path, in the form of unrelated diversification. Also, it is argued that successful trajectories must avoid the middle-income trap (MIT), which is shown to stem from the interplay of supply and demand factors. Finally, building on balance of payments constrained growth literature, a theoretical model is proposed to explain the high prevalence of MIT situations among commodity-dependent countries. It is suggested that this phenomenon arises from the interaction of commodity price volatility and real exchange rates, which affects the accumulation of sophisticated productive capabilities.
Subjects: 
economic development
middle-income trap
structural change
commodity dependence
JEL: 
B52
F42
O11
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Article

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.