scholarly journals Growth Regimes in a Structural Economic Dynamic Approach to the Neo-Kaleckian Model

2016 ◽  
Vol 2 (1) ◽  
pp. 26-39
Author(s):  
Ricardo Azevedo Araujo ◽  
Joanílio Teixeira
Keyword(s):  
Economic Growth ◽  
Technological Progress ◽  
Closed Economy ◽  
Dynamic Approach ◽  
Natural Rate ◽  
Economic Dynamic ◽  
Probable Outcome ◽  
Rate Of Profit ◽  
And Diffusion ◽  
Kaleckian Model

Following the insight that profits influence investment, providing not only the motive for it but also the means,we consider the natural rate of profit as one of the determinants of investment in a disaggregated version of the Neo-Kaleckian model of economic growth.By adopting this approach, it is shown that the structural economic dynamic is conditioned not only to the patterns of evolving demand and diffusion of technological progress but also to the distributive features of the economy, which can give rise to particular regimes of economic growth. From this perspective, it is possible to conclude that a wage-led regime is the most probable outcome in a closed economy where the natural rate of profit is one of determinants of investment. Following the insight that profits influence investment, providing not only the motive for it but also the means,we consider the natural rate of profit as one of the determinants of investment in a disaggregated version of the Neo-Kaleckian model of economic growth.By adopting this approach, it is shown that the structural economic dynamic is conditioned not only to the patterns of evolving demand and diffusion of technological progress but also to the distributive features of the economy, which can give rise to particular regimes of economic growth. From this perspective, it is possible to conclude that a wage-led regime is the most probable outcome in a closed economy where the natural rate of profit is one of determinants of investment. 

scholarly journals A multi-sectoral version of the Post-Keynesian growth model

2015 ◽  
Vol 45 (1) ◽  
pp. 127-152 ◽  
Author(s):  
Ricardo Azevedo Araujo ◽  
Joanílio Rodolpho Teixeira
Keyword(s):  
Economic Growth ◽  
Structural Change ◽  
Growth Model ◽  
Vertical Integration ◽  
Technological Progress ◽  
Natural Rate ◽  
Productivity Increase ◽  
Rate Of Profit ◽  
And Diffusion ◽  
Over Time

Abstract With this inquiry, we seek to develop a disaggregated version of the post-Keynesian approach to economic growth, by showing that indeed it can be treated as a particular case of the Pasinettian model of structural change and economic expansion. By relying upon vertical integration it becomes possible to carry out the analysis initiated by Kaldor (1956) and Robinson (1956, 1962), and followed by Dutt (1984), Rowthorn (1982) and later Bhaduri and Marglin (1990) in a multi-sectoral model in which demand and productivity increase at different paces in each sector. By adopting this approach it is possible to show that the structural economic dynamics is conditioned not only to patterns of evolving demand and diffusion of technological progress but also to the distributive features of the economy, which can give rise to different regimes of economic growth. Besides, we find it possible to determine the natural rate of profit that makes the mark-up rate to be constant over time.

scholarly journals Structural change and macrodynamic capabilities

Nova Economia ◽  
2011 ◽  
Vol 21 (3) ◽  
pp. 331-349 ◽  
Author(s):  
Ricardo Azevedo Araujo ◽  
Joanílio Rodolpho Teixeira
Keyword(s):  
Economic Growth ◽  
Structural Change ◽  
Technological Progress ◽  
Dynamic Approach ◽  
Economic Dynamic ◽  
Underdeveloped Countries ◽  
Evolutionary View ◽  
Rapid Diffusion

In this paper we study some mechanisms that block a rapid diffusion of technological progress from advanced to underdeveloped countries. In order to accomplish this task we focus on two approaches that challenge the view that technological gaps between rich and poor nations are diminishing. The first is the structural economic dynamic approach and the second is the evolutionary view. Both of them reveal that the elimination of technological gaps between rich and poor nations is more complex than what has been reported by the mainstream theory of economic growth.

The Geography of Invention in High- and Low-Technology Industries: Evidence from the Second Industrial Revolution

2006 ◽  
Vol 66 (2) ◽  
pp. 492-496 ◽  
Author(s):  
DHANOOS SUTTHIPHISAL
Keyword(s):  
Economic Growth ◽  
Technological Progress ◽  
Industrial Revolution ◽  
Technological Knowledge ◽  
Geographic Disparities ◽  
Geographic Space ◽  
Diffusion Of Technology ◽  
Rapid Generation ◽  
Technology Industries ◽  
And Diffusion

Technological progress has long been widely recognized as a crucial source of economic growth. Many countries have, accordingly, devoted considerable resources to promote more rapid generation and diffusion of technology in their economies. Yet recent studies reveal a persistence of stark contrasts across countries and geographic space more generally, not only in productivity, but also in the generation of new technological knowledge. What accounts for these geographic disparities is not well understood.

scholarly journals Reflections on neo-Kaleckian growth regimes: a Marxian reproduction perspective

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Feng Zhao ◽  
Jiahe Tian ◽  
Yuchen Duan
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Income Distribution ◽  
Technological Progress ◽  
Supply Side ◽  
Demand Side ◽  
Content Type ◽  
The Impact ◽  
Kaleckian Model

PurposeThe neo-Kaleckian model follows the ideas of Marx, Keynes and Kalecki, that investment is a key influencing factor in the dynamics of the capitalist mode of production. Through the discussion of different forms of investment decision function, this paper constructs the analysis framework of wage-led and profit-led economic growth regimes.Design/methodology/approachThe model has become an important theoretical paradigm for current Western heterodox economists regarding the research on the impact of functional income distribution on economic growth, and it has a very large impact on both theoretical and empirical research. Starting from Marx's reproduction theory, this article discusses the theoretical shortcomings of the neo-Kaleckian growth regime model.FindingsThis paper mainly focuses on three aspects: (1) the ideological legacy of “Smith's Dogma”; (2) neglecting the restrictions on income distribution from the organic composition of capital and the surplus value rate; (3) technological progress and the formation of a new long economic wave.Originality/valueThe authors believe that the neo-Kaleckian model unilaterally emphasizes the demand-side factors in the economy and, unconsciously or not, ignores the role of the supply-side, which makes it encounter certain limitations in explaining long-term growth. Even if some empirical conclusions are employed to bridge functional income distribution and technological progress, there is still a lack of a theoretical basis for accurately describing long-term economic changes using this model. In order to better promote high-quality economic development and accelerate the formation of a new pattern of economic development in which the domestic large-scale cycle is the mainstay and the domestic and international double cycles promote each other, the authors need to adopt a policy combination with the supply-side as the main and the demand-side as the supplement, and to work from both sides.

Computing of the contribution rate of scientific and technological progress to economic growth in Chinese regions

2012 ◽  
Vol 39 (10) ◽  
pp. 8514-8521 ◽  
Author(s):  
Haixiang Guo ◽  
Jinglu Hu ◽  
Shiwei Yu ◽  
Han Sun ◽  
Yuyan Chen
Keyword(s):  
Economic Growth ◽  
Technological Progress ◽  
Contribution Rate

scholarly journals The Impact of Economic Growth, Trade Openness and Technological Progress on Renewable Energy Use in Organization for Economic Co-Operation and Development Countries

2021 ◽  
Author(s):  
Md. Mahmudul Alam ◽  
Wahid Murad
Keyword(s):  
Economic Growth ◽  
Renewable Energy ◽  
Least Squares ◽  
Technological Progress ◽  
Energy Use ◽  
Trade Openness ◽  
Oecd Countries ◽  
Ordinary Least Squares ◽  
Short Term

This study investigates the short-term and long-term impacts of economic growth, trade openness and technological progress on renewable energy use in Organization for Economic Co-operation and Development (OECD) countries. Based on a panel data set of 25 OECD countries for 43 years, we used the autoregressive distributed lag (ARDL) approach and the related intermediate estimators, including pooled mean group (PMG), mean group (MG) and dynamic fixed effect (DFE) to achieve the objective. The estimated ARDL model has also been checked for robustness using the two substitute single equation estimators, these being the dynamic ordinary least squares (DOLS) and fully modified ordinary least squares (FMOLS). Empirical results reveal that economic growth, trade openness and technological progress significantly influence renewable energy use over the long-term in OECD countries. While the long-term nature of dynamics of the variables is found to be similar across 25 OECD countries, their short-term dynamics are found to be mixed in nature. This is attributed to varying levels of trade openness and technological progress in OECD countries. Since this is a pioneer study that investigates the issue, the findings are completely new and they make a significant contribution to renewable energy literature as well as relevant policy development.

The Impact of the Transformation of Age Structure on Economic Growth

2016 ◽  
Vol 04 (04) ◽  
pp. 1650031 ◽  
Author(s):  
Wen ZHAO ◽  
Xuyang ZHU
Keyword(s):  
Economic Growth ◽  
Age Structure ◽  
Capital Accumulation ◽  
Technological Progress ◽  
Participation Rate ◽  
Market Mechanisms ◽  
Economic Growth Rate ◽  
Intergenerational Redistribution ◽  
Labor Remuneration ◽  
The Impact

The impact of the transformation of the age structure of the population on economic growth is governed by a strict law. In 12 economies under the authors’ observation, the contribution from the rejuvenation of the population to economic growth is basically 6% — the Chinese Mainland makes a contribution of 6.3%. The rejuvenation of the population has stimulated economic growth, but its contribution is very small compared with the contributions from capital accumulation and technological progress. According to international experience, in the case of addressing the transformation of the age structure of the population, relying on intergenerational redistribution will exert a great negative economic impact, while reducing the intensity of that redistribution and relying on market mechanisms to adjust the level of labor remuneration can increase the employment rate and the labor participation rate, thus raising the economic growth rate to the greatest extent.

scholarly journals ARE HIGHER WAGES GOOD FOR BUSINESS? AN ASSESSMENT UNDER ALTERNATIVE INNOVATION AND INVESTMENT SCENARIOS

2018 ◽  
Vol 24 (1) ◽  
pp. 191-230 ◽  
Author(s):  
Alessandro Caiani ◽  
Alberto Russo ◽  
Mauro Gallegati
Keyword(s):  
Technological Progress ◽  
Evolutionary Economics ◽  
Middle Level ◽  
Closed Economy ◽  
Beneficial Effects ◽  
Growth Regime ◽  
Long Run ◽  
Innovation Dynamics ◽  
Macroeconomic Environment

This paper aims at investigating the interplay between inequality, innovation dynamics, and investment behaviors in shaping the long-run patterns of growth of a closed economy. By extending the analysis proposed in Caiani et al. [(2018) Journal of Evolutionary Economics], we explore the effects of alternative wage regimes under different investment and technological change scenarios. Experimental results seem to de-emphasize the role of technological progress as a possible source of greater inequality. Overall, simulation results are consistent with the predominance of a wage-led growth regime in most of the scenarios analyzed: A faster growth of low- and middle-level workers’ wages, relative to managers’, generally exert beneficial effects on the economy and allows to counteract the labor-saving effects of technological progress. Furthermore, a distribution more favorable to workers does not compromise firms’ profitability, but rather strengthen it by creating a more favorable macroeconomic environment, which encourages further innovations, stimulates investment, and sustains economic growth.

Sign in / Sign up

Export Citation Format

Share Document