Sectoral Specialisation and Growth Rate Differences Among Integrated Economies
This paper analyses the emergence of sectoral specialisation and its effects on growth rate differences providing an alternative approach to endogenous growth processes. To achieve this, we first investigate the conditions leading to sectoral specialisation as an emergent property from the dynamics generated by the model. Second, the paper investigates the relationship between specialisation patterns and growth rate differences among economies. Here again, growth rates differences are treated as an emergent property. The framework developed relies on a Kaldorian growth model with evolutionary micro-founded technical change "à la Nelson and Winter". The paper develops a multi-sectoral growth model. Following the Kaldorian tradition economic growth is here driven by the aggregate demand dynamics, constrained by the balance of payment. Technical change modeling follows the evolutionary literature on growth and industrial dynamics. Firms production techniques are build on the accumulation of capital vintages, developed through an R&D activity. Firms and therefore economies are subject to selection mechanisms through sector-wide replicator dynamics. Two regimes emerge from the simulation, the first is linked to technology dynamics and selection mechanisms and the second is linked to the evolution of the demand structure and demand characteristics. First, specialisation emerges from the heterogeneity in technical change generated by the micro-dynamics. The latter are amplified by the inter-sector selection process provided at the macro-level through wage dynamics. These mechanisms also generate growing differences in GDP growth rates. Second, demand factors influence the concentration of production in a limited number of sectors, this even when neutralising the effect of technical change. These demand factors also exert a major effect on patterns of growth rates differences. For each regimes, specialisation is combined to growth rate differences. But when in the first regime these differences are only transitory, in the second they are permanent.
Volume (Year): ()
Issue (Month): ()
|Contact details of provider:|| Web page: http://www.ifrede.org/|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Anthony Philip Thirlwall, 1979.
"The Balance of Payments Constraint as an Explanation of International Growth Rate Differences,"
Banca Nazionale del Lavoro Quarterly Review,
Banca Nazionale del Lavoro, vol. 32(128), pages 45-53.
- Anthony Philip Thirlwall, 1979. "The Balance of Payments Constraint as an Explanation of International Growth Rate Differences," BNL Quarterly Review, Banca Nazionale del Lavoro, vol. 32(128), pages 45-53.
- Anthony P. Thirlwall, 2011. "The Balance of Payments Constraint as an Explanation of International Growth Rate Differences," PSL Quarterly Review, Economia civile, vol. 64(259), pages 429-438.
- Silverberg, Gerald & Verspagen, Bart, 1995. "An Evolutionary Model of Long Term Cyclical Variations of Catching Up and Falling Behind," Journal of Evolutionary Economics, Springer, vol. 5(3), pages 209-27, September.
- Marco Valente, 1998. "Laboratory for Simulation Development," DRUID Working Papers 98-5, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
- Dalum, Bent & Laursen, Keld & Verspagen, Bart, 1999. "Does Specialization Matter for Growth?," Industrial and Corporate Change, Oxford University Press, vol. 8(2), pages 267-88, June.
- Patrick Llerena & Andre' Lorentz, 2003.
"Cumulative Causation and Evolutionary Micro-Founded Technical Change: A Growth Model with Integrated Economies,"
LEM Papers Series
2003/05, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
- Patrick Llerena & André Lorentz, 2004. "Cumulative Causation and Evolutionary Micro-Founded Technical Change : A Growth Model with Integrated Economies," Working Papers of BETA 2004-08, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
- Kaldor, Nicholas, 1972. "The Irrelevance of Equilibrium Economics," Economic Journal, Royal Economic Society, vol. 82(328), pages 1237-55, December.
- Los, Bart & Verspagen, Bart, 2002. "The evolution of productivity gaps and specialization patterns," CCSO Working Papers 200301, University of Groningen, CCSO Centre for Economic Research.
- G. Silverberg & B. Verspagen, 1995. "Evolutionary Theorizing on Economic Growth," Working Papers wp95078, International Institute for Applied Systems Analysis.
- Patrick Llerena & André Lorentz, 2003. "Alternative Theories on Economic Growth and the Co-evolution of Macro-Dynamics and Technological Change: A survey," LEM Papers Series 2003/27, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
When requesting a correction, please mention this item's handle: RePEc:jem:ejemed:1049. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.