IDEAS home Printed from https://ideas.repec.org/a/ris/ecoint/0644.html
   My bibliography  Save this article

Harrod, Kaldor, and the Idea of the "Foreign Trade Multiplier” - Harrod, Kaldor e l’idea dell’esistenza di un “moltiplicatore del commercio estero”

Author

Listed:
  • Soro, Bruno

    () (Università degli Studi di Genova, Facoltà di Giurisprudenza)

Abstract

Many authors, inspired by the so-called ‘post-Keynesian’ theories, focused their attention on the idea of the ‘Harrod’s foreign trade multiplier’ which is different from the traditional open market Keynesian multiplier. This idea, re-discovered by Nicholas Kaldor, is a topical subject in the current debate on the so-called Thirlwall’s Law, that he considered as the ‘dynamic’ version of that multiplier. In the light of the different editions of International Economics and of the precious papers collected in the recent publication of the Collected Interwar Papers and Correspondence of Roy Harrod edited by Daniele Besomi, we notice how Harrod kept his distance from that idea: after a long discussion with Kahn, Robertson, Meade and Keynes, he denied the existence of an automatic mechanism to adjust the balance of payments, as maintained in the Kaldorian tradition. - L’idea dell’esistenza di un “moltiplicatore del commercio estero di Harrod” distinto dal tradizionale moltiplicatore keynesiano di mercato aperto è da tempo oggetto di attenzione da parte di numerosi autori che si ispirano al filone di pensiero cosiddetto “post-keynesiano”. Riscoperta da Nicholas Kaldor, quell’idea è tornata di attualità nell’ambito del dibattito sulla cosiddetta “legge di Thirlwall”, che il suo stesso ideatore considera la versione “dinamica” del “moltiplicatore del commercio estero di Harrod”. Alla luce delle varie edizioni di International Economics e della preziosa documentazione contenuta nella recente edizione dei Collected Interwar Papers and Correspondence of Roy Harrod (CIPC) curata da Daniele Besomi, emerge chiaramente come, alla fine di una lunga discussione che ha visto impegnati Kahn, Robertson, Meade e lo stesso Keynes, diversamente da quanto si sostiene nella tradizione kaldoriana, Harrod abbia preso le distanze dalla sua idea originaria.

Suggested Citation

  • Soro, Bruno, 2012. "Harrod, Kaldor, and the Idea of the "Foreign Trade Multiplier” - Harrod, Kaldor e l’idea dell’esistenza di un “moltiplicatore del commercio estero”," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 65(1), pages 173-187.
  • Handle: RePEc:ris:ecoint:0644
    as

    Download full text from publisher

    File URL: http://www.iei1946.it/RePEc/ccg/SORO%20173_187.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. A. P. Thirlwall, 1983. "A Plain Man’s Guide to Kaldor’s Growth Laws," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 5(3), pages 345-358, March.
    2. Anthony P. Thirlwall, 2011. "Balance of payments constrained growth models: history and overview," PSL Quarterly Review, Economia civile, vol. 64(259), pages 307-351.
    3. Daniele Besomi, 2000. "On the Spread of an Idea: The Strange Case of Mr. Harrod and the Multiplier," History of Political Economy, Duke University Press, vol. 32(2), pages 347-380, Summer.
    4. Boyer, Robert & Petit, Pascal, 1989. "Kaldor's growth theories : past, present and prospects," CEPREMAP Working Papers (Couverture Orange) 8905, CEPREMAP.
    5. Daniele Besomi, 1997. "Statics and dynamics in harrod's trade cycle," Review of Political Economy, Taylor & Francis Journals, vol. 9(2), pages 181-209.
    6. Phelps Brown, Henry, 1980. "Sir Roy Harrod: A Biographical Memoir," Economic Journal, Royal Economic Society, vol. 90(357), pages 1-33, March.
    7. 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.
    8. Dixon, R & Thirlwall, A P, 1975. "A Model of Regional Growth-Rate Differences on Kaldorian Lines," Oxford Economic Papers, Oxford University Press, vol. 27(2), pages 201-214, July.
    9. Boggio, Luciano, 1996. "Growth and international competitiveness in a 'Kaldorian' perspective," Structural Change and Economic Dynamics, Elsevier, vol. 7(3), pages 299-320, September.
    10. Robert W. Dimand, 2000. "Hawtrey on the Keynesian Multiplier: A Response to Ahiakpor," History of Political Economy, Duke University Press, vol. 32(4), pages 909-914, Winter.
    11. A. P. Thirlwall, 1995. "The Economics Of Growth And Development," Books, Edward Elgar Publishing, number 424.
    12. A. P. Thirlwall, 1982. "The Harrod Trade Multiplier And The Importance Of Export-Led Growth," Pakistan Journal of Applied Economics, Applied Economics Research Centre, vol. 1(1), pages 1-21.
    13. A.P. Thirlwall, 1974. "Regional Economic Disparities and Regional Policy in the Common Market," Urban Studies, Urban Studies Journal Limited, vol. 11(1), pages 1-12, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Araujo, Ricardo Azevedo, 2013. "Cumulative causation in a structural economic dynamic approach to economic growth and uneven development," Structural Change and Economic Dynamics, Elsevier, vol. 24(C), pages 130-140.
    2. Micaela Antunes & Elias Soukiazis, 2009. "How well the balance-of- payments constraint approach explains the Portuguese growth performance: empirical evidence for the 1965-2008 period," GEMF Working Papers 2009-13, GEMF, Faculty of Economics, University of Coimbra.
    3. Robert A. Blecker, 2009. "Long-Run Growth in Open Economies: Export-Led Cumulative Causation or a Balance-of-Payments Constraint?," Working Papers 2009-23, American University, Department of Economics.
    4. Gustavo Britto & João Prates Romero, 2011. "Modelos kaldorianos de crescimento e suas extensões contemporâneas," Textos para Discussão Cedeplar-UFMG 449, Cedeplar, Universidade Federal de Minas Gerais, revised Jul 2013.
    5. Marcos Tostes Lamonica & Carmem Aparecida Feijo, 2007. "Crescimento E Industrialização No Brasil: As Lições Das Leis De Kaldor," Anais do XXXV Encontro Nacional de Economia [Proceedings of the 35th Brazilian Economics Meeting] 053, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    6. Mark Setterfield & Selen Ozcelik, 2017. "Is the balance of payments constrained growth rate time-varying? Exchange rate over valuation, policy-induced recessions, deindustrialization, and long run growth," Working Papers 1726, New School for Social Research, Department of Economics.
    7. Penelope Pacheco-Lopez & A.P. Thirlwall, 2005. "Trade Liberalisation, the Balance of Payments and Growth in Latin America," Studies in Economics 0506, School of Economics, University of Kent.
    8. Alberto Bagnai & Christian Alexander Mongeau Ospina, 2017. "Neoclassical versus Post-Keynesian Explanations of the Pre-Great Recession Productivity Slowdown: Panel Evidence," a/ Working Papers Series 1704, Italian Association for the Study of Economic Asymmetries, Rome (Italy).
    9. A. P. Thirlwall, 2013. "Economic Growth in an Open Developing Economy," Books, Edward Elgar Publishing, number 15208.
    10. A.P. Thirlwall, 2018. "Una vita nell’economia," Moneta e Credito, Economia civile, vol. 71(283), pages 179-210.
    11. Araujo, Ricardo Azevedo & Trigg, Andrew B., 2015. "A neo-Kaldorian approach to structural economic dynamics," Structural Change and Economic Dynamics, Elsevier, vol. 33(C), pages 25-36.
    12. Trigg, Andrew & Ricardo, Araujo, 2014. "A Multi-sectorial Assessment of the Static Harrod Foreign Trade Multiplier," MPRA Paper 53242, University Library of Munich, Germany.
    13. H. Sonmez Atesoglu & Donald Dutkowsky, 1997. "On the dynamics of balance of payments constrained growth," Applied Economics, Taylor & Francis Journals, vol. 29(10), pages 1343-1351.
    14. Arestis, Philip & Baltar, Carolina Troncoso, 2019. "A model of economic growth for an open emerging country: empirical evidence for Brazil," Structural Change and Economic Dynamics, Elsevier, vol. 49(C), pages 217-227.
    15. Carton, Christine, 2007. "Un modèle de croissance cumulative étendu á l’éducation: une validation empirique pour la région asiatique [A model of cumulative growth extended to education: an empirical assessment for the Asian," MPRA Paper 20549, University Library of Munich, Germany.
    16. Justin Doran & Bernard Fingleton, 2014. "Economic shocks and growth: Spatio-temporal perspectives on Europe's economies in a time of crisis," Papers in Regional Science, Wiley Blackwell, vol. 93, pages 137-165, November.
    17. Sergio Parrinello, 2014. "A search for distinctive features of demand-led growth models," PSL Quarterly Review, Economia civile, vol. 67(270), pages 309-342.
    18. Juan Alberto Vázquez-Muñoz, 2018. "La acumulación de capital como un determinante de la tasa de crecimiento de la ley de Thirlwall," Contaduría y Administración, Accounting and Management, vol. 63(3), pages 13-14, Julio-Sep.
    19. Andre Nassif & Carmem Aparecida Feijo & Eliane Araújo, 2016. "Structural change, catching up and falling behind in the BRICS: A comparative analysis based on trade pattern and Thirlwall’s Law," PSL Quarterly Review, Economia civile, vol. 69(279), pages 373-421.
    20. Mario Cimoli & Gabriel Porcile, 2014. "Technology, structural change and BOP-constrained growth: a structuralist toolbox," Cambridge Journal of Economics, Oxford University Press, vol. 38(1), pages 215-237.

    More about this item

    Keywords

    Harrod; Kaldor; Growth Theories; Foreign Trade Multiplier;
    All these keywords.

    JEL classification:

    • B20 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - General
    • F40 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:ecoint:0644. 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: (Angela Procopio). General contact details of provider: https://edirc.repec.org/data/cacogit.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.