Garbellini, Nadia (2010): Structural Change and Economic Growth: Production in the Short Run — A generalisation in terms of vertically hyper-integrated sectors.
Download (497kB) | Preview
Pasinetti’s (1981) Structural Change and Economic Growth provides a complete and far reaching theoretical framework for the study of structural change, and therefore of economic development, rooted in in the Classical-Sraffian tradition. Some attempts have been made, both in the ’80s — for instance Siniscalco (1982) and Momigliano & Siniscalco (1986) — and more recently — e.g. Montresor & Vittucci Marzetti (2007a) and Montresor & Vittucci Marzetti (2008) — to use this framework for empirical purposes. However, all these attempts are based on Pasinetti’s (1973) paper, i.e. on vertically integrated analysis. It is my contention that, as a consequence, they failed to recognise, and therefore to take advantage of, the main analytical feature of the 1981 book, namely vertical hyper-integration. Actually, when trying to overcome the simplifying assumptions made by Pasinetti (1981) as regards the description of the technique, the starting point should be Pasinetti (1988), and not Pasinetti (1973), the latter being an intermediate step leading to the former. The aim of the present paper is therefore, first of all, that of highlighting the key differences between Pasinetti (1973) and Pasinetti (1988), in order to show Pasinetti’s (1981) vertically hyper-integrated character. In the second place, the whole analytical framework provided by Pasinetti (1981) will be generalised by reintroducing inter-industry relations and allowing for more complex dynamics of economic magnitudes. This conceptual clarification and analytical generalisation is intended to be the first step of a line of research aiming at using, and extending, the present framework to perform empirical analyses and study the behaviour of actual economic systems.
|Item Type:||MPRA Paper|
|Original Title:||Structural Change and Economic Growth: Production in the Short Run — A generalisation in terms of vertically hyper-integrated sectors|
|Keywords:||Natural system, vertically integrated sectors, vertically hyper-integrated sectors, functional income distribution, natural rates of profit, natural prices.|
|Subjects:||B - History of Economic Thought, Methodology, and Heterodox Approaches > B5 - Current Heterodox Approaches > B51 - Socialist; Marxian; Sraffian
O - Economic Development, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O41 - One, Two, and Multisector Growth Models
|Depositing User:||Nadia Garbellini|
|Date Deposited:||07. Oct 2010 00:38|
|Last Modified:||15. Feb 2013 23:20|
De Juan, O. & Febrero, E. (2000). Measuring Productivity from Vertically Integrated Sectors. Economic Systems Research, 12(1):65–82.
Garbellini, N. (2010). Structural Change and Economic Growth: Production in the Long Run — A generalisation in terms of vertically hyper-integrated sectors. Unpublished.
Garbellini, N. & Wirkierman, A.L. (2010). Pasinetti’s Structural Change and Economic Growth: a conceptual excursus. Unpublished.
Momigliano, F. & Siniscalco, D. (1986). Mutamenti nella struttura del sistema produttivo e integrazione fra industria e settore terziario. In Mutamenti strutturali del sistema produttivo. Integrazione tra industria e settore terziario. Il Mulino, Bologna.
Montresor, S. & Vittucci Marzetti, G. (2006). Outsourcing and Structural Change: Shifting Firm and Sectoral Boundaries. In Working Papers, University of Bologna.
Montresor, S. & Vittucci Marzetti, G. (2007a). The deindustrialisation/tertiarisation hypothesis reconsidered: a subsystem application to the OECD7. In Working Papers, University of Bologna.
Montresor, S. & Vittucci Marzetti, G. (2007b). Outsourcing and Structural Change: What Can Input-Output Analysis Say About It? Journal of analytical and institutional economics, pp. 43–78.
Montresor, S. & Vittucci Marzetti, G. (2008). Constructing intersectoral innovation diffusion networks with input-output: how to get relative flows? An illustrative application to six OECD technological systems for the middle ’90s. In Working Papers, University of Bologna.
Pasinetti, L.L. (1962). A Multi-Sector Model of Economic Growth. Ph.D. thesis, University of Cambridge.
Pasinetti, L.L. (1973). The Notion of Vertical Integration in Economic Analysis. Metroeconomica, 25:1–29.
Pasinetti, L.L. (1981). Structural Change and Economic Growth. Cambridge University Press, Cambridge.
Pasinetti, L.L. (1988). Growing subsystems, vertically hyper-integrated sectors and the labour theory of value. Cambridge Journal of Economics, 12(1):125–34.
Pasinetti, L.L. (1989). Growing subsystems and vertically hyper-integrated sectors: a note of clarification. Cambridge Journal of Economics, 13(3):479–80.
Pasinetti, L.L. (2007). Keynes and Cambridge Keynesians — A ‘Revolution in Economics’ still to be Accomplished. Cambridge University Press, Cambridge.
Siniscalco, D. (1982). Il sistema produttivo: analisi per industrie e subsistemi. Ricerche Economiche, XXXVI(4):475–488.
Sraffa, P. (1960). Production of Commodities by Means of Commodities. Cambridge University Press, Cambridge.
Steedman, I. (1983). On the measurement and aggregation of productivity increase. Metroeconomica, 35(3):223–233.