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...

Kaldor's first law of growth posits a positive causal relation between the growth of manufacturing output and the growth of GDP due to static and dynamic returns to scale in manufacturing and rising productivity outside the manufacturing sector as resources are transferred from diminishing...

The objective of this study is to evaluate the effect of public spending on economic growth in DR Congo. This is to highlight the non-linear effects of public expenditure on economic growth in the DRC. In view of the results of the econometric regression, there are non-linearities in the...

We present an open economy growth model, using Stock-Flow Consistent (SFC) methodology. Our contribution is to add the possibility of one country issuing debt denominated in another country's currency, as well as allowing its firms to borrow from foreign banks. We investigate the effects and...

Muito se discute sobre qual seria a melhor maneira de se promover o crescimento autosustentado das economias capitalistas, de como ficar menos suscetível a choques exógenos, bem como analisar os determinantes do crescimento econômico. Dentro deste contexto, este trabalho tem como principal...

The aim of this study is to test the existence of balance of a payments constraint on the long run economic growth of the Turkish economy. The balance of payments constrained growth (BPCG) model which was developed by Thirlwall (1979) and extended by Thirlwall and Hussain (1982) is tested over...

El ensayo está encaminado a explicar el crecimiento económico, para ello tomacomo punto de referencia el esquema keynesiano enfatizando en sus particularidadesy la forma en que se da la intervención estatal. En principio el enfoque se hace parauna economía cerrada, y luego realiza algunas...

Our paper examines the long run relationship in Vietnam between economic growth and the current account balance equilibrium by relying on the BoP constrained growth model. We find that Vietnam grew less than the rate predicted when the period 1985 to 2010 as a whole is considered, but with...

The paper develops a Kaleckian macroeconomic model which discusses the conditions that may lead to an external debt crisis in a small developing economy fully integrated to global goods and financial markets. The focus is on how policy rules affect the stability of the economy. Two kinds of...