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Authors
Advisor(s)
Abstract(s)
The discussions in the scientific literature about economic growth trends
are vast and not unanimous. The economic theory has different opinions about
economic growth that disagree, sometimes, if the economies tend to converge
or diverge over time. In fact, the Neoclassical Theory argues that the economies
tend to converge for the same steady state and the Keynesian Theory defends that
the processes of economic growth promote divergence between countries/regions
through increasing returns to scale. In the processes of divergence, the richer
economies improve their performance and the poorer countries become worse.
Taking into account these contexts, this research intends to test the existence of
increasing returns to scale, using data for output and employment growth. For these
analyses, the approaches related to the Verdoorn and Kaldor laws were considered. The results obtained highlight the existence of increasing returns to scale in
some frameworks and reveal the importance of national and international policies
implementation to promote a more balanced and sustainable development.
Description
Keywords
Circular and cumulative processes Economic growth Keynesian theory External demand
Pedagogical Context
Citation
Publisher
Springer