Exchange rate regimes, structural change and capital mobility in a developing economy

This paper proposes to develop a balance-of-payments-constrained growth model analyse the importance of relationship between real exchange rate misalignment and share industry in output. Building on work Gabriel, Jayme Oreiro (2016), is expanded address: (i) influence price competitiveness net exports; (ii) capital mobility; (iii) nominal flexibility; (iv) wage as fraction value labour productivity; (v) quadratic output exchange-rate misalignment. An important result that both flexible fixed regimes are compatible with balanced path.