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A Neo-Kaldorian Approach to Structural Economic Dynamics


  • Araujo, Ricardo
  • Trigg, Andrew


Although the Structural Economic Dynamic approach provides a simultaneous consideration of demand and supply sides of economic growth, it does not take into fully account the possible role played by demand in the generation of technical progress. From a neo-Kaldorian perspective, this paper seeks to establish the concepts of demand and productivity regimes in an open version of the pure labour Pasinettian model. In order to derive the demand regime, a disaggregated version of the Keynesian multiplier is derived for an open economy, while the productivity regime is built in terms of disaggregated Kaldor-Verdoorn’s laws. The upshot is a multi-sector growth model of structural change and cumulative causation, in which an open version of the Pasinettian model may be obtained as a particular case. Besides, it is highlighted that the evolution of demand patterns, while being affected by differential rates of productivity growth in different sectors of the economy, also play an important role to establish the pace of technical progress.

Suggested Citation

  • Araujo, Ricardo & Trigg, Andrew, 2013. "A Neo-Kaldorian Approach to Structural Economic Dynamics," MPRA Paper 49758, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:49758

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    Cited by:

    1. Freire Junior, Clovis, 2017. "Economic diversification: Explaining the pattern of diversification in the global economy and its implications for fostering diversification in poorer countries," MERIT Working Papers 033, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    2. repec:bpj:bejtec:v:17:y:2017:i:2:p:12:n:3 is not listed on IDEAS
    3. Trigg, Andrew & Ricardo, Araujo, 2014. "A Multi-sectorial Assessment of the Static Harrod Foreign Trade Multiplier," MPRA Paper 53242, University Library of Munich, Germany.

    More about this item


    Cumulative causation; structural change; Kaldor-Verdoorn’s law;

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations


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