The Role of Investment in the Context of the Kalecki Model of Economic Growth under Socialism

Abstract

The analysis presented in this paper is based — in part — on former work published in the sixties.² In addition to some substantial expansion of the theoretical exposition, that publication has been brought up to date and revised in the light of new empirical data. There is in the literature of the socialist countries quite a number of growth models. Emphasis is put here — in the first sections of the paper — on the statistical implementation of one of them with a view to demonstrating the changing role of investment. This demonstration is made exclusively in terms of Czechoslovak data.

The author is indebted to Dr Kvĕtoslav Roubal for his critical comments on the first drafts of this paper as well as to Ing. Jan Klacek for assistance with some difficult points.