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A Classical-Marxian Growth Model of Catching Up and the Cases of China, Japan, and India: 1980–2014

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  • Adalmir Marquetti
  • Luiz Eduardo Ourique
  • Henrique Morrone

Abstract

This article presents a classical-Marxian model of catching up wherein the leader country employs a technique with higher labor productivity and lower capital productivity than the follower’s technique. The follower’s higher profit rate allows for faster capital accumulation than the leader’s. During the catching up phase, labor productivity rises while capital productivity and profit rate decline in the follower country. In addition, we discuss some stylized facts of catching up in China, Japan, and India in relation to the United States between 1980 and 2014. Catching up occurred when capital accumulation was higher in the followers. However, a high capital accumulation in the follower country can reduce capital productivity and profit rate to a level lower than the leader’s, putting the process at risk.

Suggested Citation

  • Adalmir Marquetti & Luiz Eduardo Ourique & Henrique Morrone, 2020. "A Classical-Marxian Growth Model of Catching Up and the Cases of China, Japan, and India: 1980–2014," Review of Radical Political Economics, Union for Radical Political Economics, vol. 52(2), pages 312-334, June.
    • Handle: RePEc:sae:reorpe:v:52:y:2020:i:2:p:312-334
    DOI: 10.1177/0486613419878305
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    2. Lijun Su & Junshang Liang, 2021. "Understanding China’s New Dual Circulation Development Strategy: A Marxian Input-Output Analysis," Review of Radical Political Economics, Union for Radical Political Economics, vol. 53(4), pages 590-599, December.

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    More about this item

    Keywords

    catching up; technical change; profit rate; labor productivity; mechanization;
    All these keywords.

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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