The circular causation of growth in developing economies: a bridge between evolutionary and post Keynesian approaches

Vol. 33 No. 2 (2013)

Apr-Jun / 2013
Published April 1, 2013
PDF-Portuguese (Português (Brasil))
PDF-Portuguese (Português (Brasil))

How to Cite

Almeida Raposo Torres, Daniela, and Marco Flávio da Cunha Resende. 2013. “The Circular Causation of Growth in Developing Economies: A Bridge Between Evolutionary and Post Keynesian Approaches”. Brazilian Journal of Political Economy 33 (2):240-59. https://centrodeeconomiapolitica.org.br/repojs/index.php/journal/article/view/310.

The circular causation of growth in developing economies: a bridge between evolutionary and post Keynesian approaches

Daniela Almeida Raposo Torres
Departamento de ciências econômicas da Universidade Federal de São João del-Rei (DCECO/UFSJ, Bolsista do CNPq.
Marco Flávio da Cunha Resende
Centro de Desenvolvimento e Planejamento Reginal de Minas Gerais da Universidade Federal de Minas Gerais (Cedeplar/UFMG).
Brazilian Journal of Political Economy, Vol. 33 No. 2 (2013), Apr-Jun / 2013, Pages 240-259

Abstract

Based on the Post Keynesian approach and on the Evolutionary literature, this study seeks to demonstrate the causal relationships between the National Innovation System and the national and international financial systems. This study shows that there is a circular causation in the less developed economies that contributes to the immaturity of its National Innovation System and to its structural external vulnerability. Conclusions highlight that the cycles in the less developed economies mirror the cycles of international liquidity.

JEL Classification: O40; O43.


Keywords: international liquidity national innovation system investment