A Post-Kaleckian model with productivity growth and real exchange rate applied to selected Latin American countries





Post-Kaleckian, aggregate demand, real exchange rate, productivity, real wages


This paper aims to discuss the theory of productivity growth and its empirical applications, several authors emphasize the impact of real exchange rate devaluation on productivity. The main research question is: does the real exchange rate have a positive or negative impact on productivity growth? The first step in answering this question is to discuss productivity growth in the context of demand regimes. The second step consists of an empirical experiment that estimates the productivity growth equation for a sample of Latin American countries. The overall outcome is that the Kaldor–Verdoorn coefficient is significant for all the analysed countries, Argentina, Brazil, Bolivia, Chile, Colombia, Mexico, Uruguay and Venezuela. Regarding the real exchange rate and this variable squared, the parameters are negative for all the countries, indicating that real exchange rate devaluation does not increase productivity growth.


JEL codes: O11, O15, O41



Author Biographies

Douglas Alencar, Federal University of Pará

State of Pará

Frederico G Jayme Jr, Federal University of Minas Gerais

State of Minas Gerais

Gustavo Britto, Federal University of Minas Gerais

State of Minas Gerais


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How to Cite

Alencar, D., Jayme Jr, F. G., & Britto, G. (2021). A Post-Kaleckian model with productivity growth and real exchange rate applied to selected Latin American countries. PSL Quarterly Review, 74(297), 127–146. https://doi.org/10.13133/2037-3643/16603




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