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Intersectoral Capital Mobility in a Kaldorian Model of Growth and Development


  • Dutt, Amitava Krishna


This paper examines the implications of intersectoral capital mobility in a simple formalization of N. Kaldor's model of growth and development which examines the dynamic interaction between an agricultural and an industrial sector. Capital flows are first assumed to respond to market incentives and it is shown that such flows can lead to an unstable or cyclical growth process. The flows are then assumed to occur due to government taxes and transfers and it is shown under what conditions the taxation of agriculture to finance industrial accumulation can help or hinder growth. Copyright 1996 by Blackwell Publishers Ltd and The Victoria University of Manchester

Suggested Citation

  • Dutt, Amitava Krishna, 1996. "Intersectoral Capital Mobility in a Kaldorian Model of Growth and Development," The Manchester School of Economic & Social Studies, University of Manchester, vol. 64(2), pages 153-169, June.
  • Handle: RePEc:bla:manch2:v:64:y:1996:i:2:p:153-69

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