Circular causation Growth of Developing Economies: A bridge between Evolutionary and Post Keynesian approaches

The circular causation of growth in developing economies. Based on the Post Keynesian approach and on the Evolutionary literature, this study seeks to demonstrate the causal relationships between the National Innovation System and the national and international financial systems. This study shows that there is a circular causation in the less developed economies that contributes to the immaturity of its National Innovation System and to its structural external vulnerability. Conclusions highlight that the cycles in the less developed economies mirror the cycles of international liquidity. Adapted from the source document.