Abstract

Although the Structural Economic Dynamic approach provides a simultaneous consideration of demand and supply sides of economic growth, it does not take into account the possible role played by demand in the generation of technological progress. In this paper we intend to fill this gap by introducing demand and productivity regimes, concepts from the neo-Kaldorian approach, in Pasinetti’s model of economic growth and structural change. The upshot is a multi-sector model of growth and trade in which the evolution of growth rates and technological progress depends on differential rates of productivity growth in different sectors of the economy.

Ricardo Azevedo Araujo is Adjunct Professor of the Department of Economics at the University of Brasilia, Brazil. He is also a Research Associate of the Brazilian Council of Science and Technology (CNPq) and leader of the research group of Growth and Distribution in Brazil. His research interests are on Structural Economic Dynamics with special emphasis on its connections with Balance-of-Payment Constrained Growth, Growth and Development and Evolutionary Game Theory. He is Associate Editor of the Brazilian journal EconomiA, co-Editor of a book on Political Economy and has published in journals such as Cambridge Journal of Economics, Journal of Economic Studies, Structural Change and Economic Dynamics, Metroeconomica, Review of Political Economy and Economics Letters. He visited the Department of Economics of the University of Siena, Italy, and the Department of Economics of the University of Antwerpen, Belgium, as Visiting Scholar. He is currently visiting the Department of Land Economy of the University of Cambridge, UK.