Abstract

HERRERA REVUELTA, Julio  and  LUYANDO CUEVAS, José Raúl. Functional income distribution and growth regime in Mexico and Spain. Cuad. Econ. [online]. 2018, vol.37, n.73, pp.121-142. ISSN 0121-4772.  https://doi.org/10.15446/cuad.econ.v37n73.58811.

The purpose of neoliberal reforms was to stimulate private investment and exports, and, therefore, generate higher growth and employment. However, these changes have generated a significant drop in the share of wages in income in both developed and developing countries since the late 70s. This study was undertaken using post-Keynesian theory; however, it made changes to investment and exportation functions so that the functional distribution has a greater weight in the estimations. We found that the wage moderation policies have adversely influenced the inner components of demand; while Spain is wage-led, Mexico is profit-led.

JEL: E12, E20, E22, E25, E61.

Keywords : Functional income distribution; demand growth; consumption; investment; net exports.

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