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Two Different Export-Oriented Growth Strategies Under A Wage-Led Accumulation Regime, Özlem Onaran, Engelbert Stockhammer

PERI Working Papers

The aim of the paper is to compare the relationship between distribution, growth, accumulation and employment in Turkey and South Korea. These countries represent two different export-oriented growth experiences. Thereby they provide examples for comparing different economic policies. The paper tests whether accumulation and employment are wage-led in these two countries by means of a post-Keynesian open economy model. The model, in addition to the goods market, includes a demand-driven labor market and a reserve army effect in the Marxian sense. The model is estimated in a structural vector autoregression form. The results show that decreasing the wage share does …