Resumen

PORCILE, Gabriel  y  LIMA, Gilberto Tadeu. Exchange Rate, Employment and Growth in a Model with External Restriction. Inv. Econ [online]. 2006, vol.65, n.257, pp.63-89. ISSN 0185-1667.

The paper analyzes the dynamics of prices, wages, employment and growth in a Balance-of-Payments-constrained economy It takes as a starting point the model of wage bargaining under imperfect competition proposed by Carlin and Soskice, which is then inscribed within the context of models with external constraints in the tradition of Prebish-Thirlwall. Subsequently, the model is analyzed under different assumptions regarding the rate of growth of labor supply to the modern sector of the economy, including the Lewis model as a special case. It is argued that as the elasticity of labor supply increases, the long run equilibrium rate of growth of the economy tends towards the external-constrained rate of growth. It is also argued that policies aimed at both increasing external competitiveness and reducing underemployment may have positive effects upon the long run equilibrium rate of growth.

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