Post-Keynesian models of income distribution and growth : applications to developing countries.

Summary The purpose of this thesis is to analyze the short-run effects of the functional distribution of income on aggregate demand and its components in South Korea, Thailand and China in a post-Keynesian framework. For this purpose, a model is proposed and its parameters are estimated to characterize the demand growth patterns in these countries. The econometric analysis shows that domestic demand in these countries is driven by wages, except for Thailand where some measures of income distribution indicate that the domestic economy is driven by profits, while open economies are driven by profits. The results describe that pro-labor growth policies are not sustainable in the short run in these countries. This thesis includes a review of the literature on income distribution and growth theories, presents a review of the literature on empirical work on post-Keynesian models of growth and distribution, outlines a theoretical model, and includes an analysis of the demand growth regime in South Korea, Thailand, and China, respectively. Finally, the thesis discusses the shortcomings of the model, summarizes its results and arrives at policy conclusions implied by the model.