Wage-led demand as a rebalancing strategy for economic growth in China

Jetin, Bruno; Ortiz, Luis Reyes

doi:10.1080/01603477.2020.1774392

Cited by 11 publications

(6 citation statements)

References 27 publications

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“…That work also uses historical data -more than 100 years. Most of the literature examines shorter periods, for example, Jetin and Reyes (2020) study China in 1978-2016, Dräger et al (2009) -France and Germany in 1960-2005, Onaran and Stockhammer (2005 -Turkey in 1963-1997and South Korea in 1970-2000 Our research adds to the empirical literature on Finland experience, which, as we noted previously, succeeded more than other European countries on average, according to Uusitalo (1983). Although, income policies were introduced in many countries in the period after the World War II.…”

Section: Theoretical Frameworkmentioning

confidence: 51%

“…Literature which employs that method differs in approaches how to estimate the effect on net export: directly (Onaran and Galanis, 2012) or separately on import, export, domestic and export prices (Jetin and Reyes, 2020). Also, the terms of trade or exchange rate (Onaran and Galanis, 2012;Jetin and Reyes, 2020) or profit share as a proxy for the terms of trade (Dräger et al, 2009) is used. In this study we use the terms of trade because little evidence about the effect of profit share on net export is present.…”

Section: Theoretical Frameworkmentioning

confidence: 99%

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Income distribution and economic growth in Finland: Applying Bhaduri – Marglin model

Fedoseeva,

Rozmainsky

2024

Terra Econ.

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We apply Bhaduri and Marglin model to estimate the effect of income distribution on economic growth in Finland from 1975 to 2020. The Bhaduri-Marglin model is a post-Kaleckian model with the key assumption of different propensity to consume out of wages and out of profits. ARDL model is adopted to analyze the effect of profit share increase on aggregate demand components. Findings indicate that income redistribution towards profits leads to decline in economic growth due to fall in consumption, and it positively affects investments and net export due to increased international competitiveness through costs reduction; the first effect is stronger than two other effects. These results confirm the hypothesis about wage-led regime in Finland. The approach of Scandinavian countries and Finland to the role and effect of wages, for instance, differs from classical idea about the effect of wage restraint policy for increase in investments. Rise in wages is seen as a way to increase labor productivity. Since our findings indicate wage-led accumulation regime in Finland, this approach, being consistent with Bhaduri -Marglin model, seems more appropriate.

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Section: Theoretical Frameworkmentioning

confidence: 51%

Section: Theoretical Frameworkmentioning

confidence: 99%

Income distribution and economic growth in Finland: Applying Bhaduri – Marglin model

Fedoseeva,

Rozmainsky

2024

Terra Econ.

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“…China has experienced unprecedented economic growth since its restructuring and opening-up in 1978 and has continued to perform extraordinary than many countries (Jetin and Ortiz, 2020), as such, China has experienced urbanization and influx of population into cities. Adebayo et al (2021) did a study to re-assesses the Kuznets curve (EKC) hypothesis on China's urbanization and the effect of hydroelectricity using data from 1985 to 2019.…”

Section: Empirical Literature Reviewmentioning

confidence: 99%

The Impact of Urbanization on Economic Growth in Gauteng Province, South Africa

Jacobs

David

Wyk

2023

IJEFI

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The apartheid legacy molded urbanization changes in South Africa. Post-1994 people were free to migrate to areas with greater economic activities (increased socio-economic opportunities) subsequently, the genesis of migration. Majority of the people aimed for Gauteng Province which is considered the economic hub of the country and a magnet of opportunities. This study looked at the history of Gauteng- primarily the economic position in conjunction with economic theories. This quantitative research investigated the relationship between economic growth and urbanization in the Gauteng Province. Granger causality tests were used to ascertain the relationship used in the research and the study focused on the period 1997 to 2020, using quarterly data. From the study, it was established that there is a unidirectional causality running from economic growth and employment in Gauteng- meaning that an increase in economic growth enables more jobs to be created, leading to migration of people to the province. The paper also found no causal relationship between population and economic growth- meaning that population increase does not have any effect on economic growth. People seek to progress out of poverty, primarily to an urban lifestyle to leverage socio-economic benefits- grow skills and knowledge by accessing public services such as education, and infrastructure mainly available in urbanized areas. The paper recommends for the government redefine urbanization policy to manage rapid migration. Failure to do so will lead to infrastructure ( housing, water, and electricity) and employment challenges within the province.

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“…During the last decade, empirical studies have covered emerging economies, as well. Among these studies, Molero-Simarro (2015) and Jetin and Ortiz (2020), Jetin and Kurt (2016), and Kohli (2018) conducted empirical analyses on China, Thailand, and India, respectively. An empirical literature on Turkiye has also flourished in this period.…”

Section: Review Of Empirical Researchmentioning

confidence: 99%

Debt, Wealth, Income Distribution and Demand: A post-Keynesian Empirical Study on Turkiye

Kurt¹

2022

ije

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The aim of this article is to examine effects of wealth, personal income distribution, and households' and firms' debt stock on aggregate demand and its components in Türkiye and characterize its demand regime. For this purpose, we examined the Turkish economy over the 1988-2019 period within a post-Keynesian framework. Our findings suggested that the proxy variable for wealth has a small but positive effect on consumption, but no effect on investment. We observed that of four personal income distribution indicators employed in econometric investigations, only one of them had some minor effect on consumption but none of them had any significant effect on investment. Household debt, probably due to mortgages, turned out to have a positive effect on total investment expenditures, which also consists of newly constructed residences, but no effect on consumption expenditures. Our econometric estimations also pointed out that business debt has a negative effect on investment. The synthesis of findings suggested that the demand regime is profit-led in Türkiye. However, calculation of growth contributions of variables indicate that functional income distribution has a minor role, but wealth and debt variables have a major role in determination of aggregate demand.

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Wage-led demand as a rebalancing strategy for economic growth in China

Cited by 11 publications

References 27 publications

Income distribution and economic growth in Finland: Applying Bhaduri – Marglin model

Income distribution and economic growth in Finland: Applying Bhaduri – Marglin model

The Impact of Urbanization on Economic Growth in Gauteng Province, South Africa

Debt, Wealth, Income Distribution and Demand: A post-Keynesian Empirical Study on Turkiye

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