scholarly journals A multi-sectoral version of the Post-Keynesian growth model

2015 ◽  
Vol 45 (1) ◽  
pp. 127-152 ◽  
Author(s):  
Ricardo Azevedo Araujo ◽  
Joanílio Rodolpho Teixeira
Keyword(s):  
Economic Growth ◽  
Structural Change ◽  
Growth Model ◽  
Vertical Integration ◽  
Technological Progress ◽  
Natural Rate ◽  
Productivity Increase ◽  
Rate Of Profit ◽  
And Diffusion ◽  
Over Time

Abstract With this inquiry, we seek to develop a disaggregated version of the post-Keynesian approach to economic growth, by showing that indeed it can be treated as a particular case of the Pasinettian model of structural change and economic expansion. By relying upon vertical integration it becomes possible to carry out the analysis initiated by Kaldor (1956) and Robinson (1956, 1962), and followed by Dutt (1984), Rowthorn (1982) and later Bhaduri and Marglin (1990) in a multi-sectoral model in which demand and productivity increase at different paces in each sector. By adopting this approach it is possible to show that the structural economic dynamics is conditioned not only to patterns of evolving demand and diffusion of technological progress but also to the distributive features of the economy, which can give rise to different regimes of economic growth. Besides, we find it possible to determine the natural rate of profit that makes the mark-up rate to be constant over time.

scholarly journals Growth Regimes in a Structural Economic Dynamic Approach to the Neo-Kaleckian Model

2016 ◽  
Vol 2 (1) ◽  
pp. 26-39
Author(s):  
Ricardo Azevedo Araujo ◽  
Joanílio Teixeira
Keyword(s):  
Economic Growth ◽  
Technological Progress ◽  
Closed Economy ◽  
Dynamic Approach ◽  
Natural Rate ◽  
Economic Dynamic ◽  
Probable Outcome ◽  
Rate Of Profit ◽  
And Diffusion ◽  
Kaleckian Model

Following the insight that profits influence investment, providing not only the motive for it but also the means,we consider the natural rate of profit as one of the determinants of investment in a disaggregated version of the Neo-Kaleckian model of economic growth.By adopting this approach, it is shown that the structural economic dynamic is conditioned not only to the patterns of evolving demand and diffusion of technological progress but also to the distributive features of the economy, which can give rise to particular regimes of economic growth. From this perspective, it is possible to conclude that a wage-led regime is the most probable outcome in a closed economy where the natural rate of profit is one of determinants of investment. Following the insight that profits influence investment, providing not only the motive for it but also the means,we consider the natural rate of profit as one of the determinants of investment in a disaggregated version of the Neo-Kaleckian model of economic growth.By adopting this approach, it is shown that the structural economic dynamic is conditioned not only to the patterns of evolving demand and diffusion of technological progress but also to the distributive features of the economy, which can give rise to particular regimes of economic growth. From this perspective, it is possible to conclude that a wage-led regime is the most probable outcome in a closed economy where the natural rate of profit is one of determinants of investment. 

scholarly journals A NOTE ON ECONOMIC GROWTH WITH SUBSISTENCE CONSUMPTION

2010 ◽  
Vol 14 (5) ◽  
pp. 763-771 ◽  
Author(s):  
Holger Strulik
Keyword(s):  
Economic Growth ◽  
Growth Model ◽  
Growth Rates ◽  
Degree Of Freedom ◽  
Controversial Issue ◽  
Historical Evolution ◽  
Transitional Dynamics ◽  
Economic Growth Rates ◽  
Over Time ◽  
Savings Rates

It is well known that the performance of simple models of economic growth improves substantially through the introduction of subsistence consumption. How to compute subsistence needs, however, is a difficult and controversial issue. Here, I reconsider the linear (Ak) growth model with subsistence consumption and show that the evolution of savings rates and economic growth rates over time is independent of the size of subsistence needs. The model is thus more general and less subject to arbitrariness than might have been thought initially. Quantitatively, it is shown that, although there is no degree of freedom to manipulate transitional dynamics, the model approximates the historical evolution of savings rates and growth rates reasonably well.

The Geography of Invention in High- and Low-Technology Industries: Evidence from the Second Industrial Revolution

2006 ◽  
Vol 66 (2) ◽  
pp. 492-496 ◽  
Author(s):  
DHANOOS SUTTHIPHISAL
Keyword(s):  
Economic Growth ◽  
Technological Progress ◽  
Industrial Revolution ◽  
Technological Knowledge ◽  
Geographic Disparities ◽  
Geographic Space ◽  
Diffusion Of Technology ◽  
Rapid Generation ◽  
Technology Industries ◽  
And Diffusion

Technological progress has long been widely recognized as a crucial source of economic growth. Many countries have, accordingly, devoted considerable resources to promote more rapid generation and diffusion of technology in their economies. Yet recent studies reveal a persistence of stark contrasts across countries and geographic space more generally, not only in productivity, but also in the generation of new technological knowledge. What accounts for these geographic disparities is not well understood.

scholarly journals Real exchange rate and structural change in a Kaldorian balance of payments constrained growth model

2018 ◽  
Vol 38 (1) ◽  
pp. 48-69
Author(s):  
BERNARDO MATTOS SANTANA ◽  
JOSÉ LUIS OREIRO
Keyword(s):  
Exchange Rate ◽  
Structural Change ◽  
Real Exchange Rate ◽  
Growth Model ◽  
Manufacturing Industry ◽  
Growth Models ◽  
Dynamic Properties ◽  
Output Growth ◽  
Balance Of Payments ◽  
Over Time

ABSTRACT The objective of the present article is to develop a Kaldorian Growth model that (i) had a balance of payments constraint, in order to eliminate the inconsistency of balance of payments growth models; and (ii) defines a precise mechanism by which the level of real exchange rate can affect long-term growth. An important innovation introduced in the model is the idea that Kaldor-Verdoorn coefficient - that measures the sensibility of growth rate of labor productivity to output growth - depends on the share of manufacturing output on GDP. This hypothesis allowed us to introduce the possibility of structural change, defined as a dynamic process by which the share of manufacturing industry on real output could change over time. In this case, it will be possible to analyze the dynamic properties of the model either in the case where productive structure is kept constant (case with no structural change), as in the case where it evolves over time as a result of some economic process (case with structural change).

scholarly journals Structural change and macrodynamic capabilities

Nova Economia ◽  
2011 ◽  
Vol 21 (3) ◽  
pp. 331-349 ◽  
Author(s):  
Ricardo Azevedo Araujo ◽  
Joanílio Rodolpho Teixeira
Keyword(s):  
Economic Growth ◽  
Structural Change ◽  
Technological Progress ◽  
Dynamic Approach ◽  
Economic Dynamic ◽  
Underdeveloped Countries ◽  
Evolutionary View ◽  
Rapid Diffusion

In this paper we study some mechanisms that block a rapid diffusion of technological progress from advanced to underdeveloped countries. In order to accomplish this task we focus on two approaches that challenge the view that technological gaps between rich and poor nations are diminishing. The first is the structural economic dynamic approach and the second is the evolutionary view. Both of them reveal that the elimination of technological gaps between rich and poor nations is more complex than what has been reported by the mainstream theory of economic growth.

scholarly journals On the implications of tourism specialization and structural change in tourism destinations

2018 ◽  
Vol 24 (8) ◽  
pp. 945-962 ◽  
Author(s):  
Simone Marsiglio
Keyword(s):  
Economic Growth ◽  
Structural Change ◽  
Growth Model ◽  
Economic Growth Model ◽  
Theoretical Support ◽  
Tourist Flows ◽  
Endogenous Growth Model ◽  
Balanced Growth Path ◽  
Tourism Destinations ◽  
The Relationship

We explore the relationship between tourism specialization and structural change in an endogenous growth model, analyzing its implications for both economic growth and tourist flows. We consider a two-sector economic growth model where the development of tourism activities generates a production externality and a structural change, which modifies the resources-use intensity, ultimately affecting tourist flows. We characterize the balanced growth path equilibrium and analyze under which conditions structural change may generate fast economic growth, providing a theoretical support for the empirical evidence on tourism countries. We also show that structural change may alternatively lead to stages of rejuvenation, stagnation, or decline consistently with what advanced by the tourism area life cycle hypothesis. By combining these different results, we also show that an eventual phase of decline generated by structural change does not necessarily have to be interpreted as a poor economic outcome since there might exist a bell-shaped relationship between residents’ income and number of visitors.

scholarly journals Investment specific technological progress and structural change

2010 ◽  
Vol 40 (4) ◽  
pp. 819-829 ◽  
Author(s):  
Ricardo Silva Azevedo Araujo ◽  
Joanílio Rodolpho Teixeira
Keyword(s):  
Economic Growth ◽  
Structural Change ◽  
Technical Progress ◽  
Technological Progress ◽  
Full Employment ◽  
Negative Effects ◽  
Macroeconomic Variables

In this paper we introduce investment specific technical progress into Pasinetti's model of structural change. Our aim is to assess the effects of embodied technical progress on economic growth and macroeconomic variables. Our findings suggest that despite the fact that this type of technical progress increases the productivity of capital, it has negative effects on conditions that promote full employment.

scholarly journals Structural change and economic transformation

2019 ◽  
pp. 92-114
Author(s):  
Deepak Nayyar
Keyword(s):  
Economic Growth ◽  
Structural Change ◽  
Structural Transformation ◽  
Weak Link ◽  
Economic Transformation ◽  
Supply Side ◽  
Demand Side ◽  
Services Sector ◽  
Productivity Increase ◽  
Growth Promoting

Development in Asia has been associated with a structural transformation of economies. In this process, economic growth drove structural change from the demand-side as incomes rose and production activities followed, while structural change drove economic growth from the supply-side as labour moved from low-productivity to higher-productivity activities. Such labour transfer between sectors was growth-promoting in earlier stages, while productivity increase within sectors was growth-promoting in later stages. There was an exit of labour from agriculture everywhere, while the services sector progressively became the largest employer, with the highest output-share, across Asia. The process of structural transformation remains incomplete. In many countries it is necessary to address the neglect of agriculture and renew the emphasis on manufacturing, just as it is essential to exploit the synergies between manufacturing and services. Economic growth cannot be sustained and structural transformation cannot be completed even if one of three sectors is a weak link in the chain.

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