A Classical-Marxian Growth Model of Catching Up and the Cases of China, Japan, and India: 1980–2014

Adalmir Marquetti, Luiz Eduardo Ourique and Henrique Morrone

Review of Radical Political Economics, 2020, vol. 52, issue 2, 312-334

Abstract: This article presents a classical-Marxian model of catching up wherein the leader country employs a technique with higher labor productivity and lower capital productivity than the follower’s technique. The follower’s higher profit rate allows for faster capital accumulation than the leader’s. During the catching up phase, labor productivity rises while capital productivity and profit rate decline in the follower country. In addition, we discuss some stylized facts of catching up in China, Japan, and India in relation to the United States between 1980 and 2014. Catching up occurred when capital accumulation was higher in the followers. However, a high capital accumulation in the follower country can reduce capital productivity and profit rate to a level lower than the leader’s, putting the process at risk.

Keywords: catching up; technical change; profit rate; labor productivity; mechanization (search for similar items in EconPapers)
JEL-codes: O33 O41 O47 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:sae:reorpe:v:52:y:2020:i:2:p:312-334

DOI: 10.1177/0486613419878305

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