The Economics of Demand Led-Growth Theory and Evidence for Brazil
The objective of the present article is to present the theory of demand-led growth and some econometric evidence of the existence of a demand-led growth regime for the Brazilian economy. Initially, we will do a brief review of the theory of demand-led growth, based on Kaldor’s (1988) contribution for the theme. According to Kaldor, longrun growth is determined by the sum of the growth rate of government consumption spending and the growth rate of exports. Based on the methodology developed by Atesoglu (2002), we run some econometric tests for the hypothesis of a demand-led growth regime for the Brazilian economy. The results of the tests show that almost 95% of the growth rate of real GDP in the period 1990-2005 is explained by variables at the demand side of the economy. The econometric tests also show that natural growth rate of the Brazilian economy is endogenous, being determined by the growth rate of aggregate demand.
|Date of creation:||2007|
|Date of revision:|
|Note:||Creation Date corresponds to the year in which the paper was published on the Department of Economics website. The paper may have been written a small number of months before its publication date.|
|Contact details of provider:|| Postal: Av. Prefeito Lothário Meissner, 632 - térreo, Bairro Jardim Botânico, 80210-170 Curitiba - PR|
Web page: http://www.economiaetecnologia.ufpr.br/
More information through EDIRC
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.:
- R. Dornbusch & S. Fischer & P. A. Samuelson, 1976.
"Comparative Advantage, Trade and Payments in a Ricardian Model With a Continuum of Goods,"
178, Massachusetts Institute of Technology (MIT), Department of Economics.
- Dornbusch, Rudiger & Fischer, Stanley & Samuelson, Paul A, 1977. "Comparative Advantage, Trade, and Payments in a Ricardian Model with a Continuum of Goods," American Economic Review, American Economic Association, vol. 67(5), pages 823-39, December.
- J.S.L. McCombie & Mark Roberts, 2002. "The Role of the Balance of Payments in Economic Growth," Chapters, in: The Economics of Demand-Led Growth, chapter 6 Edward Elgar Publishing.
- Gilberto A. Libânio, 2009. "Aggregate demand and the endogeneity of the natural rate of growth: evidence from Latin American economies," Cambridge Journal of Economics, Oxford University Press, vol. 33(5), pages 967-984, September.
- Miguel A. LeÛn-Ledesma & A. P. Thirlwall, 2002.
"The endogeneity of the natural rate of growth,"
Cambridge Journal of Economics,
Oxford University Press, vol. 26(4), pages 441-459, July.
- Kwiatkowski, D. & Phillips, P.C.B. & Schmidt, P., 1990.
"Testing the Null Hypothesis of Stationarity Against the Alternative of Unit Root : How Sure are we that Economic Time Series have a Unit Root?,"
8905, Michigan State - Econometrics and Economic Theory.
- Kwiatkowski, Denis & Phillips, Peter C. B. & Schmidt, Peter & Shin, Yongcheol, 1992. "Testing the null hypothesis of stationarity against the alternative of a unit root : How sure are we that economic time series have a unit root?," Journal of Econometrics, Elsevier, vol. 54(1-3), pages 159-178.
- Denis Kwiatkowski & Peter C.B. Phillips & Peter Schmidt, 1991. "Testing the Null Hypothesis of Stationarity Against the Alternative of a Unit Root: How Sure Are We That Economic Time Series Have a Unit Root?," Cowles Foundation Discussion Papers 979, Cowles Foundation for Research in Economics, Yale University.
- McCombie, J S L & de Ridder, J R, 1984. ""The Verdoorn Law Controversy": Some New Empirical Evidence Using U.S. State Data," Oxford Economic Papers, Oxford University Press, vol. 36(2), pages 268-84, June.
- Johansen, Soren, 1991. "Estimation and Hypothesis Testing of Cointegration Vectors in Gaussian Vector Autoregressive Models," Econometrica, Econometric Society, vol. 59(6), pages 1551-80, November.
- Engle, Robert F & Granger, Clive W J, 1987.
"Co-integration and Error Correction: Representation, Estimation, and Testing,"
Econometric Society, vol. 55(2), pages 251-76, March.
- Engle, Robert & Granger, Clive, 2015. "Co-integration and error correction: Representation, estimation, and testing," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 39(3), pages 106-135.
- Romer, Paul M, 1986.
"Increasing Returns and Long-run Growth,"
Journal of Political Economy,
University of Chicago Press, vol. 94(5), pages 1002-37, October.
- Paulo Gala, 2008. "Real exchange rate levels and economic development: theoretical analysis and econometric evidence," Cambridge Journal of Economics, Oxford University Press, vol. 32(2), pages 273-288, March.
- Nabakashi, Luciano & Costa da Silva, Guilherme Jonas & Oreiro, José Luis & Guimarães e Souza, Gustavo José, 2012.
"The economics of demand-led growth: theory and evidence for Brazil,"
Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
- José Luis Oreiro & Luciano Nakabashi & Guilherme Jonas & Gustavo Souza, 2010. "The Economics of Demand Led-Growth: Theory and Evidence for Brazil," Working papers - Textos para Discussao do Departamento de Economia da Universidade de Brasilia 339, Departamento de Economia da Universidade de Brasilia.
- José Luís Oreiro & Luciano Nakabashi, 2007. "The Economics of Demand Led-Growth Theory and Evidence for Brazil," Working Papers 0070, Universidade Federal do Paraná, Department of Economics.
- Barbosa, Fernando de Holanda, 2005. "The contagion effect of public debt on monetary policy: the brazilian experience," Economics Working Papers (Ensaios Economicos da EPGE) 591, FGV/EPGE Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil).
- Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
- Giovanni Dosi & Keith Pavitt & Luc Soete, 1990. "The Economics of Technical Change and International Trade," LEM Book Series, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy, number dosietal-1990, August.
- Granger, C. W. J., 1981. "Some properties of time series data and their use in econometric model specification," Journal of Econometrics, Elsevier, vol. 16(1), pages 121-130, May.
- Johansen, Soren & Juselius, Katarina, 1990. "Maximum Likelihood Estimation and Inference on Cointegration--With Applications to the Demand for Money," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 52(2), pages 169-210, May.
When requesting a correction, please mention this item's handle: RePEc:fup:wpaper:0070. 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: (Luciano Nakabashi)
If references are entirely missing, you can add them using this form.