Capital accumulation, dynamic insufficiency and economic growth in Latin America
<p>In this paper we analyse theoretically and empirically the relationship between dynamic insufficiency (DI) (Prebisch, 1970; Avendaño & Perrotini, 2015) and the growth rate consistent with balance of payments (gbp) equilibrium (Thirlwall, 1979) for a set of Latin American economies d...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Universidad Complutense de Madrid
2018-02-01
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| Series: | Papeles de Europa |
| Subjects: | |
| Online Access: | http://147.96.1.34/index.php/PADE/article/view/58670 |
| Summary: | <p>In this paper we analyse theoretically and empirically the relationship between dynamic insufficiency (DI) (Prebisch, 1970; Avendaño & Perrotini, 2015) and the growth rate consistent with balance of payments (gbp) equilibrium (Thirlwall, 1979) for a set of Latin American economies during the period 1977-2011. Our hypothesis is that DI exacerbates the external constraint on growth due to the gap between the natural rate of capital accumulation and the guaranteed growth rate (kn>gw) and that there is a causal relationship between and. This means that is determined by demand and supply conditions.</p> |
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| ISSN: | 1989-5917 |