Araujo, Ricardo (2011): Cumulative Causation in a Structural Economic Dynamic Approach to Economic Growth and Uneven Development.
Download (231Kb) | Preview
The Structural Economic Dynamic approach is distinguished by its simultaneous approach to demand and supply sides of economic growth. However, the idea that growth itself can transform an economy, which became known in the literature as cumulative causation, cannot be properly studied by this framework because technological progress is treated in the same manner as in the traditional Neoclassical model, that is, it is exogenous. Besides, it is the only source of economy growth with no role played by demand in the pace of economic growth but only in the sectoral composition of the economy. Here we introduce Verdoon’s Law in the Pasinetti’s model of structural change thus making it able to study cumulative causation and thus rendering structural changes endogenous in this model.
|Item Type:||MPRA Paper|
|Original Title:||Cumulative Causation in a Structural Economic Dynamic Approach to Economic Growth and Uneven Development|
|Keywords:||Cumulative causation, structural change, Verdoon’s law|
|Subjects:||O - Economic Development, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O41 - One, Two, and Multisector Growth Models
O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development; Intellectual Property Rights > O33 - Technological Change: Choices and Consequences; Diffusion Processes
|Depositing User:||Ricardo Araujo|
|Date Deposited:||09. Apr 2011 00:45|
|Last Modified:||11. Feb 2013 18:27|
Alonso, J. and Garcimartin, C. 1998-99. A new approach to balance-of-payments constraint: some empirical evidence. Journal of Post-Keynesian Economics 21(2), 259 – 282.
Araujo, R. and Lima, G. 2007. A Structural Economic Dynamic Approach to Balance of Payment Constrained Growth. Cambridge Journal of Economics 31(5), 755 – 774.
Araujo, R. and Teixeira, J. 2003. An Extension of the Structural Change Model to International Economic Relations. Metroeconomica 54(4), 458 – 473.
Araujo, R. and Teixeira, J. 2010. Investment Specific Technological Progress and Structural Change. Estudos Econômicos (forthcoming).
Araujo, R. and Teixeira, J. 2011. Structural Change and Macrodynamic Capabilities. Nova Economia (forthcoming).
Boyer, R. and Petit, P. 1991. Kaldor’s Growth Theories: Past, Present and Prospects for the Future. In Nicholas Kaldor and Mainstream Economics: Confrontation or Corvergence? Edited by Edward Nell and Willi Semmler. St. Martin Press. New York.
Cornwall, J. and Cornwall,W. 2002. A demand and Supply Analysis of Productivity Growth. Structural Change and Economic Dynamics, 13, 203–229.
D’Agata, A. 2010. Endogenous Adaptative Dynamics in Pasinetti Model of Structural Change. Metroeconomica 61(2), 333 – 363.
Fagerberger, J. 2000. Technological Progress, Structural Change and Productivity Growth: A Comparative Study. Structural Change and Economic Dynamics, 11(4), 393 – 411.
Hall, J. and Whybrow, O. Continuity and Continuousness: The Chain of Idea Linking Pierce’s Synechism to Veblen’s Cumulative Causation. Journal of Economic Issues XLII (2), 349 – 355.
Kaldor, N. 1966. Causes for the Slow Rate of Growth in the United Kingdom. Cambridge University Press. Cambridge.
Kaldor, N. 1972. The Irrelevance of Equilibrium Economics. Economic Journal, 82, 1237-1255.
McCombie, J. and Thirlwall, A. 1994. Economic Growth and Balance-of-Payments Constraint. St. Martins Press. New York.
Ocampo, J. 2005. The Quest for Dynamic Efficiency: Structural Dynamics and Economic Growth in Developing Countries. In: Beyond Reforms: Structural Dynamics and Macroeconomic Vulnerability. Edited by José A. Ocampo. Stanford University Press.
Pasinetti, L. 1981. Structural Change and Economic Growth – A Theoretical Essay on the Dynamics of the Wealth of the Nations. Cambridge University Press. Cambridge, UK.
Pasinetti, L. 1993. Structural Economic Dynamics – A Theory of the Economic Consequences of Human Learning. Cambridge University Press. Cambridge, UK.
Reati, A. 1998. Technological Revolutions in Pasinetti’s Model of Structural Change: Productivity and Prices. Structural Change and Economic Dynamics 9(2), 245– 62.
Skott, P. 1988. Kaldor’s Growth Law and The Theory of Cumulative Causation. Economics Working Papers School of Economics and Management, University of Aarhus.
Seterfield, M. 1997. 'History versus Equilibrium' and the Theory of Economic Growth, Cambridge Journal of Economics 21(3), 365-78.
Setterfield, M. 2010. Endogenous Growth: A Kaldorian Approach. Trinity College Deparment of Economics. Working Paper 10-01.
Solow, R. 1956. A Contribution to the Theory of Economic Growth. Quarterly Journal of Economics 70, 65–94.
Symposium: Kaldor’s Growth Laws. Journal of Post Keynesian Economics. Spring 1983, Vol. V, No. 3.
Thirlwall, A. 1979. The balance of payments constraint as an explanation of international growth rates differences, Banca Nazionale del Lavoro Quarterly Review, 128.
Thirlwall, A. 1994. Growth and Development. Fifty edition, Macmillan Press Ltd. London.
Thirlwall, A. 1997. Reflections on the Concept of Balance-of Payments-Constrained Growth. Journal of Post Keynesian Economics 19(3), 377–86.
Thirlwall, A. 1983. A Plain Man’s Guide to Kaldor’s Growth Law. Journal of Post Keynesian Economics 345 – 358.
Young, A. 1928. Increasing Returns and Economic Progress. Economic Journal, 38 (52), 527 – 542.