International audienceThe aim of this article is to analyze the effect of the income distribution between labor and capital on the growth performance of Thailand from a post Keynesian view. It rests on the theoretical model of Bhaduri and Marglin (1990) to see if an increase in the labor income share has a sufficient positive effect on consumption to offset a negative effect on investment and export demand. In order to investigate the question empirically we adopt and develop the approach of Stockhammer, Onaran, and Ederer (2009). Several measures of the labor income share are calculated to take into account the fact that wage labor represents only half of the total labor force and check the robustness of our results. We also introduce a new treatment of external trade to better integrate the price competitiveness of Thailand. The econometric investigation shows that the growth regime is profit-led over the period 1970–2011, which shows that rebalancing the Thai economy will be difficult and requires an overall change of strategy going beyond a simple prolabor policy

The role and function of income distribution in economic growth has been discussed more intensively since the financial and economic crisis that burst out more than a decade ago. The neoclassical economic analysis took invariability of the relative shares of labor and capital in national income for

The aim of this article is to analyze the short-term impact of functional income distribution on aggregate demand and its components in South Korea within a post Keynesian framework, in which demand regime of an economy is either wage or profit-led. The article firstly portrays the structural change and the macroeconomic performance of South Korea, and then presents the evolution of the labor income share in the country. The article follows with the presentation of the theoretical model employed for the analysis of the demand regime in the country and offers a survey of the empirical literature of the post Keynesian models of income distribution and growth. Then takes place the econometric analysis and the article proceeds with the evaluation of the results and concludes. The econometric investigation shows that, over the period 1970-2011, the growth regime of the domestic economy is wage-led, while that of the total economy is profit-led. The results are partially in contradiction with those already found in the literature and point that pro-labor growth policies are not viable within the current structure of the South Korean economy in the short run.

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.