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Endogenous Capacity, Multiple Equilibria And Thirlwall's Law: Theory And An Empirical Application To Mexico: 1950 - 2012., Juan Alberto Vázquez Muñoz

Doctoral Dissertations

This dissertation incorporates the investment variable in two alternative post-Keynesian theories, Thirlwall’s Law and The Endogeneity of the Natural Rate of Growth, and then uses them in order to explain the performance of the rate of growth of the Mexican economy during the 1950 – 2012 period. In chapter two we elaborate an extension of the Thirlwall’s Law model in which exports are not the only source of growth but so is investment. The demand for imports is affected in a negative way when capital accumulation alters the internal structure of economic production to substitute for imports. Then, the rate …