Title: Updating the factors adjusting economic growth rate as interpreted by M. Kalecki

Authors: Arkadiusz Jan Derkacz

Addresses: Economics Institute, University of Social Sciences, ul. Lucka 11, 00-842 Warsaw, Poland

Abstract: The main goal consists to update the factors correcting the economic growth rate by M. Kalecki, in the context of revisions to it made by K. Łaski. The author undertook a detailed analysis of both the original and the revised economic growth model. This enabled him to identify several problematic areas. On their basis, an attempt was made to present the final model of economic growth, which optimally describes the mechanism of GDP dynamics. Therefore, it seems that the thesis has been put forward that the economic growth rate, determined by the level of investment, is very realistically corrected by the degree of production capacity utilisation, the level of capital intensity and the level of organisational and production excellence. The conclusions drawn can be regarded as valuable for the practice of economic policy and economics as a science dealing with social and economic phenomena.

Keywords: economic growth; gross domestic product; Kalecki; new institutional economics; institutions; effective demand; investments.

DOI: 10.1504/IJTGM.2022.125907

International Journal of Trade and Global Markets, 2022 Vol.15 No.4, pp.406 - 422

Received: 06 May 2020
Accepted: 16 Sep 2020
Published online: 04 Oct 2022 *

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