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A Kaldorian approach to catch up and structural change in economies with high degree of heterogeneity

Author

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  • Marcos Tostes Lamonica

    (Fluminense Federal University)

  • Carmem Aparecida Feijo

    (Fluminense Federal University, Brazilian National Council for Scientific and Technological Development (CNPq))

Abstract

This paper, based on Kaldor's main contributions, discusses the specificities in the catch up process of developing economies with high degree of structural heterogeneity. The theoretical model developed shows that developing economies, when modernizing the domestic versus external stock of capital, can reduce the technological gap and thus obtain a faster growth rate without producing disequilibrium in the balance of payments in the long run. As income distribution explains the incentive to the introduction of innovations through capital accumulation, the model is well succeed in connecting capital accumulation, income distribution, technological gap and long term external constraint. We conclude that capital accumulation, under certain circumstances, can overcome external constraint if the accumulation effort promotes structural change increasing the importance of sectors more technological-intensive.

Suggested Citation

  • Marcos Tostes Lamonica & Carmem Aparecida Feijo, 2013. "A Kaldorian approach to catch up and structural change in economies with high degree of heterogeneity," PSL Quarterly Review, Economia civile, vol. 66(265), pages 107-135.
    • Handle: RePEc:psl:pslqrr:2013-23
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    Cited by:

    1. Guglielmo Forges Davanzati, 2015. "Nicholas Kaldor on endogenous money and increasing returns," Working Papers PKWP1505, Post Keynesian Economics Society (PKES).
    2. Alberto Botta, 2020. "The short- and long-run inconsistency of the expansionary austerity theory: a post-Keynesian/evolutionist critique," Journal of Evolutionary Economics, Springer, vol. 30(1), pages 143-177, January.
    3. Carmem Feijo & Marcos Tostes Lamonica & Sergiany da Silva Lima, 2022. "Growth and stagnation in a dual economy: The case of Brazil," PSL Quarterly Review, Economia civile, vol. 75(301), pages 119-138.

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    More about this item

    Keywords

    structural change; technological progress; industrialization; external restriction;
    All these keywords.

    JEL classification:

    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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