Econometrica: Sep 1971, Volume 39, Issue 5
Development Strategy for a Medium-Sized Economy
Morris TeubalIn this paper an analysis of optimum structural change and optimum trade policies for a developing economy is carried out in the context of a neoclassical three-sector open model of economic growth. The sectors are agriculture, light industry, and heavy industry, and the conditions for "staged" and "direct" patterns of development are derived. Some implications of a foreign exchange bottleneck are also derived.
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