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Foreign direct investment, accumulation of productive capital and income distribution

Author

Listed:
  • Mário Augusto Bertella
  • Gilberto Tadeu Lima

Abstract

It is developed a macrodynamic model in the post-keynesian tradition of political economy of the productive capital accumulation and income distribution to analyze some of the impacts of the (flow of) foreign direct investment and the (stock of) foreign productive capital on capital accumulation, economic growth and functional income distribution in a stylized economy. Alongside a usual demand effect, the impacts of such an internationalization of local capital through labor productivity and market concentration are taken into account as well. JEL Classification: E22, E25.

Suggested Citation

  • Mário Augusto Bertella & Gilberto Tadeu Lima, 2005. "Foreign direct investment, accumulation of productive capital and income distribution," Brazilian Journal of Political Economy, Center of Political Economy, vol. 25(2), pages 74-95.
    • Handle: RePEc:ekm:repojs:v:25:y:2005:i:2:p:74-95:id:632
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    More about this item

    Keywords

    Foreign Direct Investment; Capital Accumulation; Income Distribution;
    All these keywords.

    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • E25 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Aggregate Factor Income Distribution

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