Rise and Fall of the Peruvian heterodoxy: a simple model of the new structuralism

Abstract

This article presents a structuralist model for the peruvian economy, which seeks to capture some of its key features, such as the dependence on intermedíate and capital goods, the relative rigidity of the export and agricultural supply, the existence of parastatal input producen and the possibility of financing the production through foreign debt. The model is later used to explain the long-term restrictions to growth, as well as to criticize the economic policy of the Belaunde regime and to present the logic of the heterodox alternative and the reasons of its initial success and later disaster.​