A Kaldor-Schumpeter model of cumulative growth: combining increasing returns and non-price competitiveness with technological catch-up and research intensity

• Autor(a) principal: João Prates Romero
• Data de Publicação: 2016
• Tipo de documento: Artigo de conferência
• Idioma: eng
• Título da fonte: Repositório Institucional da UFMG
• Texto Completo: http://hdl.handle.net/1843/37001; https://orcid.org/0000-0003-1254-0074
• topic: Increasing returns; Kaldor-Dixon-Thirlwall model; Research intensity; Technological catch-up; Thirlwall’s law; Macroeconomia; Desenvolvimento econômico; Oferta e procura; Demanda (Teoria econômica)

Taking into account the relevance of the Kaldorian and the Schumpeterian contributions to macroeconomic growth theory, this paper proposes a growth model that consistently combines the insights of these two traditions while solving some of the most important limitations of the original Kaldor-Dixon-Thirlwall model. This model takes into account the main factors emphasized by the Kaldorian and the Schumpeterian literatures, while keeping the importance of both demand and supply-side factors for economic growth. The proposed Kaldor-Schumpeter growth model was also transposed to a multi-sectoral setting that indicates that: (i) changes in the performance of a given sector affect the performance of the other sectors through inter-sector demand externalities by easing the BOP constraint; and (ii) an increase in the growth rate of foreign output can exert a negative impact on the domestic economy, provided that the negative effect of higher foreign non-price competitiveness is larger than the positive demand effect.