Abstract

Along the lines of kaldorian tradition, we analyse how specialisation and innovation, on the one side, and the propulsive role of demand, on the other, determine the rate of growth of an open economy bounded by its international economic relations. The model used is characterised by some post-keynesian elements: cumulative causation through Verdoorn law; static and dynamic economies of scale; balance of payments constrained growth. We add to these elements the role of technology, in particular the role of learning by doing. Using numerical simulations, we highlight the relevance of specialisation in de termining the long run rate of growth, the economic weight of path-dependency and we study possible catching-up phenomena.