Structural Change and Gender Sectoral Segregation in Sub-Saharan Africa

Related publications

• Working Paper No.1031 09 October 2023

  A Stock-Flow Ecological Model from a Latin American Perspective

  Esteban Pérez-Caldentey, José Eduardo Alatorre, Lorenzo Nalin, Giuliano Toshiro Yajima and Leonardo Rojas Rodriguez
  Abstract

  This study aims to develop an ecological stock-flow consistent (SFC) model based on the Latin American–stylized facts regarding economic, financial, and environmental features. We combine the macro-financial theoretical framework by Pérez-Caldentey et al. (2021, 2023) and the ecological modeling of Carnevali et al. (2020) and Dafermos et al. (2018). We discuss two scenarios that test exogenous climate-related shocks. The first scenario presents the case in which international regulation on commodity trade becomes more stringent due to environmental concerns, thus worsening the balance-of-payment constraint of the region. The second scenario concerns the increase in frequency and intensity of adverse climate events in the region. Both scenarios show that the financial external constraint that determines the growth path of Latin American economies may be further exacerbated due to environmental-related issues.

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• Working Paper No.1024 26 July 2023

  When Minsky and Godley Met Structuralism

  Nitin Nair
  Abstract

  Underdevelopment is often conceived as being reproduced domestically. This paper emphasizes the international forces that enable the persistence of underdevelopment. We first explore how the currency hierarchy imposes a dependency relation between developed and underdeveloped economies. We improvise and quantify the currency hierarchy using ratios from the consolidated sovereign balance sheet. Using the improvisation of the currency hierarchy, we identify that a weak currency must compensate its position by resorting to three mechanisms: changes in interest rates, changes in exchange rates, and accumulation of international reserves to improve balance sheet structure. We employ these relationships to formulate two novel, financial post-Keynesian behavioral equations: an international reserves function and a domestic interest rate function. These equations are simulated in a stock-flow consistent model. We simulate the transmission of international shocks and domestic fiscal expansion. The key findings are (1) that the intensity of economic activity in the emerging economy is reliant on the level of economic activity (and policy) i n the developed economy and (2) that any attempts to stimulate—through government spending—the emerging economy benefit primarily the developed economy while harming the emerging economy’s private sector, assuming free capital and goods mobility. This indicates the existence of a balance-of-payment constrained expansion originating from the demand for international reserves as a margin of safety. Simulations show import controls to be a solution. We find government spending complemented by import substitution to be the most appropriate response to a crisis of international origin and suggest the need for international cohesion between emerging economies to create a more conducive international financial and trade system, halting the reproduction of underdevelopment. 

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• Policy Notes No.1 01 May 2023

  Greece: Higher GDP Growth at What Cost?

  Dimitri B. Papadimitriou, Gennaro Zezza and Giuliano Toshiro Yajima
  Abstract

  In 2022, Greek GDP grew at a higher rate than the eurozone average as the nation’s economy rebounded from the COVID-19 shock.

  However, it was not all welcome news. In particular, Greece registered its largest current account deficit since 2009. Despite a widespread focus on fiscal profligacy, it is excessive current account and trade deficits—largely caused by private sector imbalances—that are at the root of Greece’s multiple economic challenges. This policy note identifies the major determinants causing the deterioration of the current account balance in order to devise appropriate corrective policies.

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