Seminario PePe (Políticas Públicas) - Camilo Mesa

We analyze the effects of international trade on the process of structural change. We show a positive correlation between openness and the share of the agricultural sector for developing economies, and present a model to rationalize this stylized fact. We built a two-sector model and compare the equilibrium under autarky and open economy. The results indicate that, for developing economies, international trade may delay structural change.