Capital Flows and Rates of Profit

Michael Webber
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Michael Webber: Department of Geography, The University of Melbourne, Parkville, Victoria 3052 Australia

Review of Radical Political Economics, 1989, vol. 21, issue 1-2, 113-135

Abstract: Using a simple two department model this paper concludes that even if capital does flow from less to more profitable firms or industries, profit rates may not be equalized. Thus theories that assume that profit rates are equal in equilibrium are called into question as well as those which argue that profit rates are unequal solely because of immobilities.

Date: 1989
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Persistent link: https://EconPapers.repec.org/RePEc:sae:reorpe:v:21:y:1989:i:1-2:p:113-135

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