Do demand and profitability stimulate capital accumulation? An analysis for Brazil / Henrique Morrone.

Format:

Book

Government document

Author/Creator:

Morrone, Henrique, author.

Language:

English

Subjects (All):

Economic and Social Development.

Brazil.

Local Subjects:

Economic and Social Development.

Brazil.

Physical Description:

1 online resource (12 pages)

Contained In:

CEPAL Review Vol. 2015, no. 116, p. 159-170 2015:116<159 1684-0348

Place of Publication:

[Place of publication not identified] : United Nations, 2016.

System Details:

text file

Summary:

This article tests whether the profit share of GDP and capacity utilization affect capital accumulation in Brazil in the period 1950-2008 (in the sense of Granger causality). The methodology developed by Toda and Yamamoto (1995) is used to verify the Granger non-causality hypothesis. The results show that capacity utilization “Granger-causes” capital accumulation in the Brazilian economy and, also that the profit share of GDP does not “Granger-cause” the national investment-capital ratio. This corroborates the Kaleckian proposal based on the fundamental role of the accelerator, and suggests that the Brazilian economy can grow with either a concentration or a de-concentration of income, provided a suitable institutional arrangement is in place.

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