From the History of Capitalism to a Post-Neoclassical Synthesis: The Economy of Belonging

Obregon Diaz, Carlos Federico (2026): From the History of Capitalism to a Post-Neoclassical Synthesis: The Economy of Belonging.

Abstract

This paper presents a theoretical and historical analysis of economic development based on the concept of belonging. It argues that existing growth theories fail to explain cross-country differences because they neglect institutional inclusion and the role of the middle class in expanding effective market demand. The Economy of Belonging framework interprets development as a function of institutional arrangements that determine participation in markets and access to rights. Comparative evidence from Russia, Latin America, and East Asia shows that successful development depends on the expansion of a broad middle class and the alignment of investment with technological frontiers. The paper contributes to the literature by integrating institutional economics, growth theory, and political economy into a unified framework centered on belonging.

• Item Type: MPRA Paper
• Language: English
• Keywords: • Economic development • Growth theory • Institutional economics • Middle class • Effective demand • Comparative development • Political economy • Economic history • Development policy • Market size
• Subjects: B - History of Economic Thought, Methodology, and Heterodox Approaches > B5 - Current Heterodox Approaches > B52 - Institutional ; Evolutionary; F - International Economics > F6 - Economic Impacts of Globalization > F63 - Economic Development; N - Economic History > N1 - Macroeconomics and Monetary Economics ; Industrial Structure ; Growth ; Fluctuations > N10 - General, International, or Comparative; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O10 - General; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O11 - Macroeconomic Analyses of Economic Development; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O15 - Human Resources ; Human Development ; Income Distribution ; Migration; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O43 - Institutions and Growth; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O47 - Empirical Studies of Economic Growth ; Aggregate Productivity ; Cross-Country Output Convergence

References

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