Cumulative causation in a structural economic dynamic approach to economic growth and uneven development

A structural economic dynamic approach is distinguishable by its simultaneous considerations of supply and demand and their related effects wielded upon economic growth. However, properly considering cumulative causation requires a special framework for more fully accounting for technological progress, and not leaving it as simply exogenous. With this inquiry dimensions of Verdoorn's Law are selectively embedded in Pasinetti's multi-sector model, thus allowing us to better consider cumulative causation through rendering structural changes endogenous. In this setup, reconciliation between cumulative causation and balance of payments constrained views is shown to hold.

► Dimensions of sectoral Verdoorn's Law are embedded in Pasinetti's model. ► Structural changes and technical progress are made endogenous in this model. ► The channels of interaction between demand and technical progress are studied. ► A multi-sectoral version of Thirlwall's Law with technical progress is derived. ► The implications on uneven development are studied.