Cover -- Title Page -- Contents -- Latin American Development Forum Series -- Introduction -- PART 1 Growth and the Dynamics of Productive Structure -- 1 The Quest for Dynamic Efficiency: Structural Dynamics and Economic Growth in Developing Countries -- Introduction -- Some Methodological Issues and "Stylized Facts" -- The Dynamics of Production Structures -- Innovations and Associated Learning and Diffusion Processes -- Complementarities and the Associated Institutional Development -- Elastic Factor Supplies -- Interplay of Innovations, Complementarities, and Elastic Factor Supplies -- Simple Formalization of the Links Between Structural and Macroeconomic Dynamics -- Policy Implications -- Endnotes -- Bibliography -- 2 Trade Openness and Technology Gaps in Latin America: A "Low-Growth Trap" -- Introduction -- Openness, Technology, and Growth: A Simple Model -- Liberalization Strategies and Performance -- The Low-Growth Trap and Its Structural Determinants -- Understanding the Microeconomic Sources of Technology Gaps -- Conclusions -- Annex A -- Annex B -- Endnotes -- Bibliography -- 3 Four Sources of "De-Industrialization" and a New Concept of the "Dutch Disease" -- Introduction -- The Four Sources of De-Industrialization -- An Inverted-U Relationship Between Manufacturing Employment and Income Per Capita -- A Declining Relationship Between Income Per Capita and Manufacturing Employment -- A Decline in Income Per Capita Corresponding to the Turning Point of the Regression -- The Dutch Disease -- Trying to Swim Against the De-Industrialization Tide -- Finland and the Diversity of the Nordic Countries -- East Asian and Southeast Asian Industrialization -- Mexico and Central America's Maquila (or Labor-Intensive Assembly Activities) Industrialization Process -- The Andean Community Countries -- China, India, and Turkey.

De-Industrialization-Does It Matter? -- Conclusions -- Annex A: Econometric Results-Ordinary Least Squares Estimation -- Annex B: Country Classification -- Endnotes -- Bibliography -- 4 Globalization, Rising Labor Inequality, and Poverty in Latin America -- Introduction -- Analytical Issues -- The Supply-Side Story -- Demand-Side Issues -- A Simple Analytical Framework -- Capital Account Liberalization -- Current Account Liberalization -- Graphic Illustration of the Possible Effects of Balance of Payments Liberalization -- Growth, Distribution, and Poverty in Latin America: Recurring Problems -- Macroeconomic Conditions -- Observed Patterns of Growth and Inequality -- The Effects of Trade Reforms on Skill Intensity and Labor Income Inequality -- Conclusions -- Endnotes -- Bibliography -- PART 2 Macroeconomic Vulnerabilities -- 5 Developing-Economy Cycles -- Introduction -- Preliminaries -- Goodwin's Model -- A Contractionary Devaluation Cycle -- A Developing-Country Debt Cycle -- Excess Capacity, Corporate Debt Burden, and a "Cold Shower" -- Final Thoughts -- Endnotes -- Bibliography -- 6 Fiscal Policy Efficacy and Private Deficits: A Macroeconomic Approach -- Introduction -- A Basic Approximation -- Fiscal Policy Efficacy Under an Open Capital Account -- Some Unpleasant Political Economy Arguments -- Heterodox Policy Instruments -- A Flexible Tax -- A Tax on Financial Flows -- Final Remarks -- Annex: The Formal Model -- Case 1: Open Capital Account and External Sustainability -- Case 2: Open Capital Account and Fiscal Efficacy -- Case 3: Flexible Tax -- Case 4: Tax on Financial Flows -- Endnotes -- 7 External Debt, Growth, and Sustainability -- Introduction -- Segmented Integration, the Real Interest Rate, and the Country Risk Premium -- External Financing -- Growth Rates of Output and Imports -- The Dynamics of Debt.

Financial Deficit and Trade Surplus -- First Condition of Sustainability -- Multiple Equilibria and Self-Fulfilling Prophecies -- Complementary Conditions of Sustainability -- Positive Growth Rate -- Lower Limit to the Absorption-Output Ratio -- Multiple Equilibria (II) -- Annex -- Endnotes -- Bibliography -- 8 Divergence and Growth Collapses: Theory and Empirical Evidence -- Introduction -- The Evidence for Divergence and the Neoclassical Growth Models -- Divergence, Endogenous Growth, and Classical Development Theory -- Growth Collapses, Inequality, and Trade Specialization -- Conclusions -- Endnotes -- Bibliography -- Index -- Back Cover.