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Authors
Martinho, Vítor
Advisor(s)
Abstract(s)
The Keynesian Theory and the New Economic Geography defend that
the economic growth processes follow trends of divergence, through self-reinforced
circular and cumulative phenomena, promoted by increasing returns to scale. The
Keynesian Theory explains these processes highlighting the importance of the
external demand and based on the Verdoorn law, where the productivity growth
is endogenous and dependent on the output growth. The New Economic Geography
developments are based on the real wage differences between economies and on
transport costs. Following these contexts and the current conjuncture worldwide, this
chapter proposes to test the impacts of external demand and real wages (as engines
of circular and cumulative phenomena) on output growth. For that, statistical information associated with output growth, exports growth and wages was considered.
To analyse these data, the Thirlwall law and the developments of the New Economic
Geography were taken into account. The findings identified to reveal the importance
of exports and employment compensation for the economic growth patterns worldwide and the relevance of dealing with these differences to promote more sustainable
development
Description
Keywords
Keynesian theory New economic geography Output growth Real wages