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An appraisal of neo-Kaldorian theories from a structural economic dynamics perspective

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  • Araujo, Ricardo Azevedo
  • Teixeira, Joanilio Rodolpho

Abstract

Neo-Kaldorian (NK) theories encompass demand-led approaches to economic growth. Notwithstanding their substantial success, a Structural Economic Dynamics (SED) assessment of NK frameworks highlights insights that an aggregated viewpoint cannot address. The present article contains the outcome of an extensive cross-fertilisation between NK and SED theories. With this approach, we formally confirm Pasinetti's view that the acquisition and assimilation of novel production techniques is the main benefit of international relations amongst countries with foreign trade as a transmission channel. Besides, effective Balance-of-Payments (BoP) constraint-alleviating strategy, such as the proper management of the Real Exchange Rate (RER), shows up as a critical tool to promote growth-enhancing structural changes. We make concepts such as cumulative causation and structural change more inclusive of international learning and the RER, going further in establishing the connections between the SED and NK theories formally expressed.

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  • Araujo, Ricardo Azevedo & Teixeira, Joanilio Rodolpho, 2021. "An appraisal of neo-Kaldorian theories from a structural economic dynamics perspective," Structural Change and Economic Dynamics, Elsevier, vol. 59(C), pages 247-255.
    • Handle: RePEc:eee:streco:v:59:y:2021:i:c:p:247-255
    DOI: 10.1016/j.strueco.2021.09.004
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