This paper examines the impact of improvements in productivity on prices, output, the real wage rate and the balance of payments. Within the context of the model used in this paper, an improvement in productivity can take two alternative forms: (1) a cost saving for a given output and (2) an...

This paper attempts to emphasize the role of the rate of profit on the balance of payments by integrating the Marxian rate of profit with the post-Keynesian balance-of-payments-constrained growth model (Thirlwall’s Law). In this regard, the domestic rate of profit determines the direction...

The classical argument for free trade stressed the possibilities of economic growth by exploiting the gains from trade. A trade surplus per se was not the main objective; presumably the argument was that trade would be balanced at the new higher growth rate. Moreover, the arguments for free trade...