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Causes of the Slow Rate of Economic Growth in the United Kingdom

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    ABSTRACT: The aim of this paper is analyze the elasticity in balance of payments constrained models on Keynesian-structuralist tradition. Precisely, we intend to scrutinize why income demand elasticity of imports and exports are different between emerging and developed countries. We start from the benchmark Thirlwal (1979)'s model, emphasizing the role of income elasticities on growth among countries. Besides, we show the theoretical and empirical aspects of demand-led models highlighting why industrialization in periphery does not solve the external constraint on growth in several periphery countries. Finally, we present theoretical elements of post keynesian, evolutionary and intitutionalist traditions that contribute to the understanding of growth in developing countries. Conclusions highlight that elasticities are endogenous and depend on the structural heterogeneity of those economies.
    XVIII Encontro Regional de Economia - ANPEC-NORDESTE; 07/2013
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    ABSTRACT: This paper analyses the emergence of sectoral specialisation and its effects on growth rate differences providing an alternative approach to endogenous growth processes. To achieve this, we first investigate the conditions leading to sectoral specialisation as an emergent property from the dynamics generated by the model. Second, the paper investigates the relationship between specialisation patterns and growth rate differences among economies, where as well, growth rates differences are treated as an emergent property. The paper develops a multi-sectoral agent-based growth model. The framework developed relies on a Kaldorian growth model with evolutionary micro-founded technical changè a la Nelson and Winter (1982). Following the Kaldorian tradition economic growth is driven by the aggregate demand dynamics, constrained by the balance of payment. Technical change modelling follows the evolutionary liter-ature on growth and industrial dynamics. Firms production techniques are build on the accumulation of capital vintages, developed through an R&D activity. Firms and therefore economies are subject to selection mechanisms through sector-wide replicator dynamics. Two regimes of specialisation emerge from the simulation, one driven by technological change dynamics the second is linked to the evolution of the demand structure. For each regimes, the sectoral specialisation leads to growth rate differences. In the technology-driven regime these differences remain transitory, while in the second they are permanent.
    11/2013;