The role of microeconomics in heterodox economics

Lee, Frederic S.; Jo, Tae‐Hee

doi:10.4324/9781351265287-8

Cited by 2 publications

(2 citation statements)

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“…Under objective uncertainty, this is not the case. In a dynamic market economy, in which actors operate in a fundamentally uncertain environment, predefined real national factor prices that could guide firms in their choice of input factors in any given country do not exist (Lee & Jo, 2018). Take the price of capital: Firstly, it is heavily influenced by monetary policy, set by a public institution.…”

Section: The Schumpeterian Theory In An International Conte X Tmentioning

confidence: 99%

Foreign direct investments and the dynamics of trade and capital flows: Schumpeterian insights for sustained development

Kaczmarczyk

Flassbeck

2023

Global Policy

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This article analyses the role of foreign direct investment (FDI) in trade and development theory and outlines the resulting implications for economic policy. We propose an alternative model of international trade and development based on absolute, not comparative advantages of firms, which are nested in countries but compete internationally. Applying a Schumpeterian theory of dynamic development, we consider how firms can either increase their competitiveness through productivity gains at a given wage level, or by combining the existing high level of productivity with lower wages in low‐income countries. We argue that the aim of competition policy must be to improve the quality of economic competition in international markets, limit monopoly rents and disincentivise rent‐seeking activities through the mere outsourcing of production. To that end, we propose that economic policy must reinstate rigorous wage bargaining regimes and make FDI subject to wage conditionality, obliging foreign companies to increase their wages in the host economy in line with average national productivity growth and the national inflation target.

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Section: The Schumpeterian Theory In An International Conte X Tmentioning

confidence: 99%

Foreign direct investments and the dynamics of trade and capital flows: Schumpeterian insights for sustained development

Kaczmarczyk

Flassbeck

2023

Global Policy

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“…Thus heterodox economic theory is a theoretical explanation of the historical process of social provisioning within the context of a capitalist economy. (Lee 2009, 8, emphasis in original) Lee has developed this view in several recent papers (Lee 2008(Lee , 2011a(Lee , 2011b(Lee , 2011c. Besides these empirical grounds of the heterodox economic theory, he shows that heterodoxy is a community of economists who contribute to develop approaches such as Austrian economics, feminist economics, Institutional-evolutionary economics, Marxian-radical economics, Post Keynesian and Sraffian economics, and social economics.…”

Section: Introductionmentioning

confidence: 99%

The embedded state and social provisioning: insights from Norbert Elias

Tinel

2015

Advancing the Frontiers of Heterodox Economics

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The role of microeconomics in heterodox economics

Cited by 2 publications

References 0 publications

Foreign direct investments and the dynamics of trade and capital flows: Schumpeterian insights for sustained development

Foreign direct investments and the dynamics of trade and capital flows: Schumpeterian insights for sustained development

The embedded state and social provisioning: insights from Norbert Elias

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