EconPapers    
Economics at your fingertips  
 

Path dependence, distributive cycles and export capacity in a BoPC growth model

Marwil Dávila-Fernández and Serena Sordi ()

Structural Change and Economic Dynamics, 2019, vol. 50, issue C, 258-272

Abstract: In Dávila-Fernández and Sordi (2019), we have extended Goodwin's (1967) model to study the interaction between distributive cycles and international trade for economies in which growth is balance-of-payments constrained (BoPC). Building on that set-up, we investigate the implications of allowing exports to be a function of the capital stock. Using the existence part of the Hopf bifurcation theorem, we show that the resulting 3-dimensional system admits a limit cycle solution. We rely on numerical simulations to verify if fluctuations are persistent and bounded. Applying panel cointegration techniques, we also provide empirical evidence for a sample of 19 OECD countries between 1950–2014 that gives support to the formulation adopted for the exports function. Our main contribution lies in developing a simple base-line model to study distributive dynamics in open economies in line with recent developments in the BoPC growth literature. Furthermore, we show how the interaction between demand and innovation waves can generate complex dynamics as a representation of the statement “history matters”.

Keywords: Growth cycle; Path dependence; Thirlwall's law; Distributive cycles; Hopf bifurcation; Cointegration (search for similar items in EconPapers)
JEL-codes: E12 E32 O40 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0954349X18304193
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Path dependence, distributive cycles and export capacity in a BoPC growth model (2018) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:streco:v:50:y:2019:i:c:p:258-272

Access Statistics for this article

Structural Change and Economic Dynamics is currently edited by F. Duchin, H. Hagemann, M. Landesmann, R. Scazzieri, A. Steenge and B. Verspagen

More articles in Structural Change and Economic Dynamics from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

 
Page updated 2019-12-07
Handle: RePEc:eee:streco:v:50:y:2019:i:c:p:258-272