Neo-Kaldorian (NK) theories encompass demand-led approaches to economic growth. Notwithstanding their substantial success, a Structural Economic Dynamics (SED) assessment of NK frameworks highlights insights that an aggregated viewpoint cannot address. The present article contains the outcome of an extensive cross-fertilisation between NK and SED theories. With this approach, we formally confirm Pasinetti's

This paper provides a micro-econometric analysis of the factors facilitating the introduction of Sustainable & Responsible Innovations by firms, with a focus on those aimed at improving occupational health and safety and reducing environmental impacts. Compared to the latter, the former objective of innovation has rarely been investigated with quantitative methods. By means of a bivariate probit model

The article identifies foundational principles of the structural analysis of economic, political and social systems, exploring their bearing on the study of structural transformations. In doing so, it delves especially into the conceptual resources provided by strands of economic theory. Particular importance is given to the relative positions of socio-economic groups, productive sectors, and institutions;

This paper builds upon Pasinetti's pure labour model, formalizing some of the insights that he has provided into the structure of international trade. A systematic approach is followed, starting with restrictive assumptions that are relaxed in subsequent stages of analysis. The starting point is a model in which two countries, one advanced and the other underdeveloped, have equal costs of production

Modigliani and Miller theory forms the theoretical foundation of corporate finance. Yet Modigliani and Miller theory was derived from a very special case of cash flows. Weighted Average Cost of Capital (WACC), which is part of the Modigliani and Miller theory, plays a fundamental role in capital structure decision and asset valuation. Empirically, asset valuation calculated from cash flows discounted

The relationship between information and communications technology (ICT) and productivity has been examined extensively, but no research has investigated the spatial spillover effects of ICT on labor productivity. Accordingly, this research aimed at investigating the ICT spillover effects on labor productivity in 28 European Union (EU) countries over 2007-2017. The spatial autocorrelation of labor

Motivated by disputes over the quantity theory of money and the fiscal theory of the price level (the FTPL), I consider price determination in another macro model which can be used both in the short run and in the long run. It is a two-sector model with flexible prices and profit-maximizing firms. Government and the foreign sector are also included. It is assumed that prices are determined by supply

This paper assesses whether and how the participation to Global Value Chains (GVCs) contributes to trade imbalances. We test empirically the relationship between GVCs participation and a country’s net export for 42 countries in the period 2000–2014, using the World Input - Output Database (WIOD) on international production linkages. We find that trade balance is positively associated with countries’

With growing industrialization comes environmental concerns. Thus, we are motivated to offer empirical insights into how industrialization affects the environment. Using ecological footprint to proxy environmental degradation, we examine the heterogeneous effects of industrialization on the environment. We utilize data from 37 African countries from 2000 to 2016 and use the quantile regression model

We introduce the Industry Space based on value-added exports as a complementary visualisation of economic development and structural cross-country differences to the established Product Space, which relies on gross exports. Since value-added exports disentangle global and national value chains, we argue they enable a more accurate and holistic depiction of an economy’s capabilities. Specifically, the

Structural economic analysis (SEA) can be characterized as addressing means-ends problems at the systemic level. The paper argues that SEA can provide the theoretical tools for a broader field of enquiry, where the production system shapes the constraints and opportunities not only of a ‘systemic actor’ who pursues objectives on behalf of the entire system, but also of a variety of possible political-economic

The literature on deindustrialisation often neglects the role of finance in the decline in manufacturing, despite the increasing shift towards financial speculation relative to real investments. This paper tries to bridge this gap in the literature by examining the role of finance in Nigeria's premature deindustrialisation, particularly banks’ drive for short-term profits and their choice to lend to

Following the theory of absolute cost advantage, the present study aims to verify the hypothesis that, during 2000-2014, the real effective exchange rates of the United States and German manufacturing sectors vis-à-vis their North American and European partners, respectively, have been governed by the relative vertically integrated unit labour costs. To this purpose, the second generation of panel

In advanced economies, nominal wage growth and inflation have been falling in secular terms since the early 1980s. Drawing on debates on industrial composition and industrial dualism, I argue that a key driver of falling wage growth and inflation has been the growing share of employment in “stagnant services”: those with limited productivity growth, competitive product markets, and thin profit margins

Structural change is important driver of productivity. Existing decompositions of structural change rely heavily on the share weights of firms. Ideally, one would need a complete census of all firms to calculate the share weights. However, empirical data are often less than ideal. Another limitation of the structural change decompositions is that existing firms that switch from one industry to another

Renewable electricity is a pillar of the sustainability transition being pursued through climate and energy policy strategies, and the European Green Deal represents a potential investment plan for this new phase of development. Economic growth can be influenced by the expansion of renewable electricity consumption, but the nature of their relationship is ambiguous and depends on various economic and

This paper investigates the aggregate business bankruptcy in relation to three macro-level factors: the government effectiveness, entrepreneurship activity and control of corruption for six European countries during the period from 2004 to 2017. We employ fuzzy-set qualitative comparative analysis (fsQCA) and partial least squares regression (PLS). Our findings show that countries with a high level

Using daily data of novel coronavirus pneumonia (COVID-19) covering 118 countries from January 1 to April 13, 2021, this research examines the relationship between the government response stringency index (GRSI) and COVID-19 pandemic. The empirical results show that GRSI significantly negatively impacts confirmed cases, and the effects are especially larger around 14 to 21 days after the implementation

With the continuous development of the global economy, global energy resources have been severely consumed in the past few decades. Under this situation, can trade play a positive role in optimizing the allocation of resources and help to solve the global energy problem? This topic is extremely important for promoting the sustainable development of global economy. However, up to now, little is known

The current availability of longer series of input-output tables, as well as the release of global input-output databases, has fostered a growing literature analyzing changes in the economic structure and their drivers. In this paper, we take advantage of these time-series by proposing a methodology designed to trace the contribution of different drivers of the change in interindustrial relationships

How does high dependence on natural resources affect income inequality? Surprisingly little is known about the impact of dependence on primary goods on income distribution. Building on insights from the resource curse literature, this paper studies the relationship between income shocks through changes in commodity prices and income inequality in a panel of 80 countries from 1990 to 2016. We analyze

International trade is often presented as a game played by national states. If this is partially true, especially in the case of major countries, it is only a side of the coin. Changes in international trade patterns are therefore treated as the result of a change of technique process, taking place also due to international diffusion of technical knowledge. In fact, the main players are multinationals

The present paper applies an Input-Output accounting framework, based on the logical device of vertical hyper-integration, to measure productivity trends across six advanced industrial economies (US, Germany, Japan, UK, France and Italy) during recent decades. Rather than measuring performance from the income side of the economy, as in traditional TFP growth analyses, disaggregated productivity changes

This paper uses the exogenous shock generated by the COVID-19 pandemic and the relative government response as an informative case in investigating the factors able to affect policy efficacy. Lockdown measures have been widely adopted to limit the diffusion of COVID-19, indirectly supporting the capacity of the hospital system to face the pandemic. Lockdown obliges people to change their social behaviour

This paper presents a critical analysis of the naïve neoclassical theory of capital by applying it to Turkish economic history. The paper first develops a unified framework of theoretical predictions on growth, distribution, and dynamic inefficiency. This framework clarifies why the naïve neoclassical theory remains largely misleading in understanding the historical, macro dynamics of a growing, capitalist

We investigate how economic growth in a demand-driven economy with semi-endogenous productivity growth can be compatible with a stable employment path. Our model uses a Sraffian supermultiplier (SSM), and we endogenize the growth rate of autonomous demand, and semi-endogenize productivity growth. The basic model has a steady state that is consistent with a stable employment rate, and in which the growth

Technological innovation is critical to secure long-term productivity benefits in any section of society. Investment in ICT is often seen as an imperative for improving banking efficiency. However, the unexpected failure of ICT in enhancing efficiency has unearthed the dilemma observed by Solow, who remarked, “You can see the computer age everywhere, except in productivity statistics”. We analyze the

From the 1980s, Brazil quasi-stagnated while East-Asia continued to grow. What went wrong? Classical developmentalists and post-Keynesians argue the cause was the desertion of the national developmental project based on structural change or industrialization. New-developmental economics agrees but is more specific: two historical new facts reduced investments. In the 1980s, a fiscal crisis of the state

The paper aims to investigate the existence of a trade-off between financial market confidence and national government budget dynamics in the Eurozone. By comparing two indexes, the hypothesis of the existence of a constraint between credit default swaps and public deficits from 2009:I to 2014:I is tested. The results support the conclusion that – during the period of the Euro crisis – fiscal discipline

We investigate the interplay between the local spread of COVID-19 and patterns of individual mobility within and across self-contained geographical areas. Conceptually, we connect the debate on regional development in the presence of shocks with the literature on spatial labour markets and address some research questions about the role of individual mobility in affecting the spread of the disease.

In a post-Keynesian growth model with two types of workers, an attempt is taken to understand changes in financial behaviour and income distribution and their macroeconomic causes and consequences. For a relatively strong speed of adjustment in the financial market and a relatively weak reserve army effect, a stable steady state is achieved in the wage-led demand regime. An endogenous and perpetual

The article draws on the consideration that, especially after the Second World War, economics started favouring its alliance with technical reason, loosening its previous ties with practical reason. In so doing, the discipline has considerably developed its technical-analytical apparatus, but at the price of diminishing its capacity to come to grip grips with the most intriguing problems of present-day

This paper looks at decentralisation as an institutional solution for curbing secessionist pressures by making potentially seceding regions strictly better off by staying in the union. We show that a bottom-up decentralisation reform, where single regions that can opt to assume or not stronger fiscal responsibilities on the basis of bilateral negotiations with the central government, may be more successful

This paper revisits the External Financial Dependence (EFD) index originally formulated employing data for American firms in the 1980s by Rajan and Zingales (1998). This index is meant to reflect technological characteristics of the industries and it is commonly assumed that its values are stable in time and across countries. Despite its popularity, there have been reduced attempts to extend the original

For many years, there was an unanswered theoretical question among Post-Keynesian scholars: What’s the behaviour through time of capacity utilisation after an aggregate demand shock? Under a (baseline and extended) Neo-Kaleckian framework, there should be a persistent effect on capacity utilisation to a shock like this one. On the other hand, Classical-Keynesian scholars are inclined to emphasise a

This paper presents a theoretical model for understanding the co-evolution process between technologies and employment relations institutions. We have named this framework the Evolutionary Industrial Relations System (e-IRS) after both the original concept of an Industrial Relations System (IRS) by Dunlop and the evolutionary theory. The basic ideas of Dunlop's IRS are maintained: actors interacting

The Zambian economy does not follow the standard structural transformation pattern because agriculture's declining share in GDP corresponds to an increase in the share of services and not manufacturing. This paper establishes the relevance of capital as well as transaction costs in structural transformation using a computable general equilibrium (CGE) model. It is found that reducing transaction costs

Global value chain (GVC) participation has transformed many lines of business. The benefits it provides in terms of greater specialization and technology diffusion, however, do not spread identically across countries and industries. This paper shows that taking into account the functional specialization helps to explain how the benefits of GVC participation are distributed. Using data for 35 industries

This study addresses the new research agenda of reconciling structural change with Kaldor’s facts. The mainstream economics interprets the facts as a state at which the economy grows along the generalised balanced growth path. Sectors in multi-sectoral models can be aggregated since the specific functions are used. The motions of aggregate variables can be described by the two-dimensional differential

We study the extent to which countries undergo structural change during and after episodes of sustained investment surges. In particular, we explore the evolution of trade flows, considering (i) exports sophistication or complexity, (ii) exports diversification, and (iii) capital goods imports. Using the episodes identified by Libman et al. (2019), we document the heterogeneous nature of these episodes

In post-Keynesian literature, Hein (2012b) was the first to incorporate financialization as an influential positive determinant of the rate of technological change. However, financialization is more like a two-edged sword which can affect technological change negatively as well. We capture both the positive as well as the negative effect of financialization on technological change which encapsulates

This paper empirically investigates the possibility of self-sustained oscillations at business cycle frequency. The theoretical model considers aggregate economic activity and the functional income distribution in the spirit of Goodwin (1967). In the empirical investigation, we utilize four measures each of economic activity and the labor share for the US post-war macroeconomy. Using Schuster’s periodogram

This paper provides new evidence on the relationship between innovation, export performance and trade elasticities across different sectors. It explores a unique database, which comprises a diverse selection of 15 countries over the period 1976-2012. The empirical investigation also employs different regression techniques, namely a system GMM estimator and a panel error correction model. All estimations

This work studies the economization of life in 21st-century neoliberal capitalism through a systematic review of the literature produced within the field of feminist political economy during the last few years. More specifically, it analyzes various processes that seek to make intimate life profitable. In particular, it focuses on the commodification of affections, feelings, experiences, sex, or life

The participation of manufacturing in the GVA of many advanced economies is continuously decreasing. The purpose of this work is to contribute to the dialogue around the drivers of such trend. In order to do so, we use input-output analysis for decomposing the variation in the manufacturing share as the sum of the effects of the variation of various possible drivers of deindustrialization: prices,

Samuelson assumed a linear wage curve for each of a continuum of techniques such that their envelope was a monotonically falling wage curve for the economy, from which an aggregate production function fulfilling the marginal productivity conditions could be derived. But the capital intensities of the techniques chosen at each rate of profit are not necessarily lower at higher rates of profit, if the

Proportional allocation of subsidies is an inadequate approach in facilitating the recovery of economic sectors from disasters. It treats the sectors in isolation which inaccurately represents an interdependent macroeconomic system. The Inoperability Input-Output Model (IIM) is a disaster impact analysis model that considers the interdependency of economic sectors in measuring the impact of disasters

The goal of the paper is to verify a causal relationship between forward linkages from domestic services to manufacturing and the participation/position of a country in global value chains (GVCs) in selected Central and Eastern European economies. We observed a strong polarisation pattern: the Baltic countries along with the Czech Republic strengthen their positions and participation in GVCs by having

This paper analyses data on industrial robots in European manufacturing sectors. In particular, we focus on the applications and characteristics of industrial robots, their distribution over countries and sectors and the main factors that are correlated with robot adoption such as wage levels and robot prices. We argue that, contrary to popular belief, the types of robots widely used in manufacturing

Three decades after the fall of the Berlin wall and one and a half decades after the Big Bang enlargement of the European Union (2004-2007), we revisit contrasting narratives about the benefit of both free trade and the EU enlargement for Central and Eastern European (CEE) countries. We distinguish old, pre-2004 EU countries from CEE countries that joined the EU in 2004-2007, as well as from the CEE

Social capital plays a role in many desirable economic outcomes. We analyze how these beneficial effects translate into the performance of economies by developing a dynamic stochastic general equilibrium (DSGE) model featuring the role of social capital in explaining the Solow residual. We then simulate and estimate the model with Bayesian techniques using Italian data. Our framework fits actual data

Development studies on the middle-income trap have highlighted the challenges for developing economies to transform their productive systems from simple towards high value-added activities. Here, we use trade data of 116 countries to quantify the stages of productive sophistication and reveal the critical phase that countries encounter at intermediate levels of economic sophistication. Our results

This paper provides an empirical analysis of the Italian total factor productivity (TFP) growth for the 1995-2012 period that takes into account the factors explaining cross-regional differences in productivity growth. We focus on the changes in the quality of labor caused by the increasing use of temporary workers and on the migration flows of human-capital, which almost unidirectionally moved from

This paper investigates to what extent green growth is able to promote social equity and which social policies can complement environmental policies to achieve social prosperity and sustainability. We develop a dynamic macrosimulation model to explore the social and structural effects of the Italian national energy and climate plan. We show that green growth alone will not result in better societal

This paper aims to analyze economic and commercial convergence in the three active integration agreements in the region: Central American Integration System, Southern Common Market, and Pacific Alliance. To this end, we estimated the Economic Convergence Index and correlations among the main macroeconomic aggregates. The empirical evidence reveals that, apart from Venezuela, Latin American countries

With the growing pressure from the adverse impact of environmental pollution and climate change, the deployment of renewable sources is becoming one of the economic priorities for governments worldwide. Despite potential gains of renewable sources, little evidence is provided in the literature about the determinants of renewable energy deployment in the MENA region. In particular, whether political

This work is intended to show that past epidemic scenarios are not suitable to estimate the macroeconomic impact of the new 2019 coronavirus. Using five centuries of macroeconomic data for England and a unique dataset on epidemics and other significant events (i.e., wars and natural disasters), we show that the macroeconomic effect of epidemics reflects the socio-economic features characterizing different

Contrary to the notion of a natural tendency in deindustrialization, this paper, performing a cross-country long-term analysis, documents the existence of a variety of patterns of deindustrialization. Looking at industrial sectors and their technological characteristics, categorised on the ground of the Pavitt (1984) taxonomy, we do find a markedly uneven process of deindustrialization with Science

I expound a model of technological progress, institutional development and growth in the aggregate. I show the model implies that long-run growth depends upon the evolution of institutions; that fixed institutions do not cause growth in the long-run; that fixed institutions can only cause growth in the short-run; and that institutions that inhibit growth are institutions that are not capable of evolution

Social Exclusion is a major concern for EU institutions and several instruments have been devised to counter it. This work aims to assess the role played by policy measures in fighting social exclusion in the EU, distinguishing between national and supranational tools. Given the available data, we run a multilevel model, combining national and regional observations for 20 EU Member States between 2005