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A Neo-Kaldorian Approach to Structural Economic Dynamics

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  • Araujo, Ricardo
  • Trigg, Andrew

Abstract

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 laws. The upshot is a multi-sector growth model of structural change and cumulative causation, in which an extended version of the Pasinettian model to foreign trade may be obtained as a particular case. Furthermore, we show 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 in establishing the pace of technical progress.

Suggested Citation

  • Araujo, Ricardo & Trigg, Andrew, 2013. "A Neo-Kaldorian Approach to Structural Economic Dynamics," MPRA Paper 50370, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:50370
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    Cited by:

    1. Freire, Clovis, 2019. "Economic diversification: A model of structural economic dynamics and endogenous technological change," Structural Change and Economic Dynamics, Elsevier, vol. 49(C), pages 13-28.
    2. Bo Carlsson & Gunnar Eliasson & Karolin Sjöö, 2018. "The Swedish industrial support program of the 1970s revisited," Journal of Evolutionary Economics, Springer, vol. 28(4), pages 805-835, September.
    3. 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 2017-033, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    4. Kemp-Benedict Eric, 2017. "Dynamic Stability of Post-Keynesian Pricing," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 17(2), pages 1-12, June.
    5. Trigg, Andrew & Ricardo, Araujo, 2014. "A Multi-sectorial Assessment of the Static Harrod Foreign Trade Multiplier," MPRA Paper 53242, University Library of Munich, Germany.

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    More about this item

    Keywords

    Cumulative causation; structural change; Kaldor-Verdoorn law;
    All these keywords.

    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
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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