Keynesian and schumpeterian efficiency in a BOP-constrained growth model

The paper aims to contribute to the debate on specialization and growth in two forms. Firstly, it develops a North-South model in which the ratio between the income elasticity of exports and imports in the South (that gives the rate of growth compatible with external equilibrium) depends on the Keynesian and Schumpeterian efficiency of the pattern of specialization, as defined by Dosi et al (1990). The model draws on key insights of the technology gap literature to discuss how these efficiencies are related to the dynamics of technological learning. Secondly, the model is tested including the variables Keynesian and Schumpeterian efficiency in a Keynesian growth regression. Several estimation procedures are used to test the model, among which Finite Mixture Estimation, which allows for estimating the parameters for homogenous groups of countries.Schumpeterian efficiency, keynesian efficiency, balance-of-payments-constrained growth, Thirlwall's Law

Technology, structural change and BOP constrained growth: A structuralist toolbox

The Latin American Structuralism (LAS) is a significant part of the heterodox tradition in the theory of long run growth, with a focus on the problems of developing economies which started their industrialization process when other regions had already accumulated substantial technological capabilities. The emergence of a centre-periphery system posed specific problems to growth and distribution in laggard economies which LAS discusses in a systematic way. In this paper we presented a simple model which,firstly, captures key insights of the LAS school, such as the persistency of technological asymmetries and structural heterogeneity; secondly, it can be used to analyze the impacts of shocks and policies based on how they affect supply-side and demand side parameters of the model; thirdly, it links more closely (Post-) Keynesian macroeconomics based on the BOP constraint with the evolutionary microeconomics concerned with the dynamics of learning; lastly, it can be used as a toolbox and a teachable model in the analysis of the interactions between structural change, technological catching up and long run growth.technology gap - structural change -- structuralist model

Technology, structural change and BOP constrained growth: a structuralist toolbox

The Latin American Structuralism (LAS) is a significant part of the heterodox tradition in the theory of long run growth, with a focus on the problems of developing economies which started their industrialization process when other regions had already accumulated substantial technological capabilities. The emergence of a centre-periphery system posed specific problems to growth and distribution in laggard economies which LAS discusses in a systematic way. In this paper we presented a simple model which, firstly, captures key insights of the LAS school, such as the persistency of technological asymmetries and structural heterogeneity; secondly, it can be used to analyze the impacts of shocks and policies based on how they affect supply-side and demand side parameters of the model; thirdly, it links more closely (Post-) Keynesian macroeconomics based on the BOP constraint with the evolutionary microeconomics concerned with the dynamics of learning; lastly, it can be used as a toolbox and a teachable model in the analysis of the interactions between structural change, technological catching up and long run growth.

Convergence, trade and industrial policy: Argentina, Brazil and Uruguay in the international economy, 1900–1980

This paper discusses the economic performance of three Latin American countries (Argentina, Brazil and Uruguay) from a comparative perspective, using as a benchmark a group of four developed countries (France, Germany, the United Kingdom and the United States). The focus is on the relative performance within the region and between the Latin American countries and the developed countries in the period 1900-1980. The paper argues that Argentina and Uruguay benefited from a privileged position in international markets at the beginning of the 20th century and this allowed them to converge. However, they failed to adjust to the major long-run change in the pattern of world trade brought about by World War I and the Great Depression, which implied a persistent decline of their export markets. On the other hand, Brazil, after having been much less successful until 1930, grew at higher rates thereafter based on rapid structural change and the building up of competitive advantages in new industrial sectors. The more vigorous Brazilian policy for industrialization and export diversification may explain why Brazil succeeded in changing its pattern of specialization, while Argentina and Uruguay were locked in to the old pattern. A typology of convergence regimes is suggested based on the growth experience of these countries

Agricultural institutions, industrialization and growth: the case of New Zealand and Uruguay in 1870-1940

In this paper we apply a model of early industrialization to the case of New Zealand and Uruguay in 1870-1940. We show how differences in agricultural institutions may have produced different development paths in two countries which were similar under many respects. While in New Zealand the active role of the Crown in regulating the land market facilitated access to land, in Uruguay land was seized by a small group of large landowners. Our model shows that land concentration may have negatively infuenced industrialization and growth by impeding the formation of a large group of middle-income landowners and, as a consequence, the development of a domestic demand for basic manufactures. We support this view with a comparative analysis of agricultural institutions and industrial development in New Zealand and Uruguay.Agricultural Institutions, Industrialization, Growth, New Zealand, Uruguay, Functional Distribution, Agricultural surplus

Agricultural Institutions, Industrialization and Growth: the Case of New Zealand and Uruguay in 1870-1940

Abstract In this paper we apply a model of early industrialization to the case of New Zealand and Uruguay in 1870-1940. We show how di_erences in agricultural institutions may have produced di_erent development paths in two countries which were similar under many respects. While in New Zealand the active role of the Crown in regulating the land market facilitated access to land, in Uruguay land was seized by a small group of large landowners. Our model shows that land concentration may have negatively inuenced industrialization and growth by impeding the formation of a large group of middle-income landowners and, as a consequence, the development of a domestic demand for basic manufactures. We support this view with a comparative analysis of agricultural institutions and industrial development in New Zealand and Uruguaygricultural Institutions; Industrialization; Growth; New Zealand; Uruguay; Functional Distribution; Agricultural surplus;

Tecnología, heterogeneidad y crecimiento: un caja de herramientas estructuralista

En este texto se presentan algunas ideas claves del estructuralismo latino-americano por medio de un conjunto muy acotado de ecuaciones y gráficos. El artículo pretende ser, al mismo tiempo, un instrumento didáctico (que puede usarse como apoyo en cursos de grado e de post-grado) y una caja de herramientas para pensar los efectos de ciertas políticas y choques sobre el crecimiento y la distribución. Se busca así contribuir a la enseñaza y difusión de una rica e importante corriente del pensamiento sobre desarrollo económico, destacando sus altos niveles de articulación interna, su originalidad y, al mismo tiempo, sus vínculos y continuidad con otras teorías heterodoxas del crecimiento y la distribución, como las teorías keynesiana y evolucionista.

Aplicação da lógica fuzzy em processos de decisão econômica

In the nonconventional economic literature decision processes are mainly analyzed on the basis of cognitive aspects (such as the existence of limited rationality) and institutional aspects (such as rules of thumb, institutions and conventions). The fuzzy logic, in turn, offers a form of treating the decision process when agents only have imprecise and subjective information in a context of complexity and uncertainty. This paper discusses the points of convergence and complementarities between the fuzzy logic and the theory of behavior based on limited rationality and rule-guided economic behavior.complexity; uncertainty; decision; fuzzy

Um Modelo Dinâmico de Macroeconomia Aberta com Metas de Inflação, “Conflito Distributivo” e Equilíbrio na Conta Corrente

The paper discusses the impacts of an inflation target regime on growth, distribution and stability in an open economy from a Post-Keynesian perspective. The model combines a conflicting claims theory of inflation, changes in the rate of capacity utilization and equilibrium in the external sector to show that in the long run monetary policy has a real impact on growth and employment – there exists a trade-off between the inflation rate and the growth rate. A monetary rule that takes into consideration equilibrium in current account is considered. It is shown that this rule can contribute to stability in the long run, to the extent that it hinders the possibility of an explosive growth in the stock of the external debt.Growth. Foreign debt. Kaleckian model of open economy. Stability. Indebtedness.