Kaleckian Essays on Contemporary Issues in Middle-Income Economies: Theoretical Extensions and Applications
Kaleckian model, post-Keynesian model, development, growth and distribution
This thesis examines persistent dual economic structures in developing nations through a Kaleckian perspective. Moving beyond conventional perspectives that view informality as a temporary phenomenon destined to disappear with economic advancement, the research demonstrates how this duality transforms fundamental macroeconomic processes, including long-term adjustment mechanisms, social policy effectiveness, and growth patterns.
The work develops through interconnected yet independent essays. Initially, it analyzes the evolution of economic discourse on welfare and its relationship with structural development literature. Subsequently, it presents a Kaleckian model that explicitly incorporates the informal sector, demonstrating how its specific dynamics influence long-term equilibrium. The analysis reveals significant impacts of informality on productive capacity utilization, investments, and growth, illustrating the ineffectiveness of conventional strategies when they disregard sectoral heterogeneity.
Additionally, the thesis investigates how various taxation and transfer mechanisms affect sectoral composition and growth in dual economies, identifying possible trade-offs between redistribution, public service provision, and accumulation. The framework is subsequently expanded to incorporate financial and external sectors, showing how credit restrictions and balance of payments considerations condition growth possibilities.
Finally, the study addresses ecological dimensions of development, analyzing how redistributive policies impact resource utilization through differences in sectoral consumption patterns, identifying conditions under which redistribution and environmental sustainability can be compatible.
Through the application of the Kaleckian perspective to contemporary economic issues, the thesis presents several contributions: it adapts Kaleckian models to better reflect the realities of current developing economies; demonstrates the non-neutrality of the urban informal sector in macroeconomic processes; identifies growth limitations arising from the financial sector; highlights distinctive constraints on welfare systems in dual economies; and integrates environmental considerations into distributional analysis. The developed framework offers analytical tools for designing more effective poverty reduction strategies that recognize structural heterogeneity, while maintaining central aspects of Kaleckian analysis, with its emphasis on demand and distribution.