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Growth and Stagnation in a Two-Sector Model: Kaldor's Mattioli Lectures: Review Article


  • Skott, Peter


Nicholas Kaldor's Mattioli Lectures analyze a two-sector model with increasing returns to scale (IRS) in industry and diminishing returns in agriculture (DR). This review article shows that (1) with IRS in industry, a long-run equilibrium growth path with strictly positive growth rates may exist even if agriculture is subject to DR; (2) the industrial sector is the 'engine of growth' if agricultural investment is determined passively by available saving; and (3) if one introduces a separate agricultural investment function, both positive and negative agricultural supply shocks may lead to stagnation, thus vindicating Kaldor's emphasis on commodity price stabilization. Copyright 1999 by Oxford University Press.

Suggested Citation

  • Skott, Peter, 1999. "Growth and Stagnation in a Two-Sector Model: Kaldor's Mattioli Lectures: Review Article," Cambridge Journal of Economics, Oxford University Press, vol. 23(3), pages 353-370, May.
  • Handle: RePEc:oup:cambje:v:23:y:1999:i:3:p:353-70

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    References listed on IDEAS

    1. Paul Davidson, 1994. "Post Keynesian Macroeconomic Theory," Books, Edward Elgar Publishing, number 124.
    2. Philip Arestis & Stephen P. Dunn & Malcolm Sawyer, 1999. "Post Keynesian Economics and Its Critics," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 21(4), pages 527-549, July.
    3. Paul Davidson, 1991. "Is Probability Theory Relevant for Uncertainty? A Post Keynesian Perspective," Journal of Economic Perspectives, American Economic Association, vol. 5(1), pages 129-143, Winter.
    4. Sheila C. Dow, 1999. "Post Keynesianism and Critical Realism: What Is the Connection?," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 22(1), pages 15-33, September.
    5. Paul Davidson, 1996. "Reality and Economic Theory," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 18(4), pages 479-508, July.
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    Cited by:

    1. Alejandro Diaz-Bautista, 2004. "Mexico’s Industrial Engine of Growth: Cointegration and Causality," Econometrics 0402010, EconWPA.
    2. de Souza, Joao Paulo A., 2014. "Growth Complementarity Between Agriculture and Industry: Evidence from a Panel of Developing Countries," UMASS Amherst Economics Working Papers 2014-11, University of Massachusetts Amherst, Department of Economics.
    3. Kaldewei, Cornelia & Weller, Jürgen, 2013. "Empleo, crecimiento sostenible e igualdad," Macroeconomía del Desarrollo 145, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    4. John E. King, 2010. "Kaldor and the Kaldorians," Chapters,in: Handbook of Alternative Theories of Economic Growth, chapter 7 Edward Elgar Publishing.
    5. de Souza, Joao Paulo A., 2015. "Evidence of growth complementarity between agriculture and industry in developing countries," Structural Change and Economic Dynamics, Elsevier, vol. 34(C), pages 1-18.

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