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Dynamics of Employment and Accumulation of Capital in Colombia, 1965–2019: An Econometric Analysis

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  • Carlos Alberto Duque Garcia

Abstract

Following Marx’s general law of capitalist accumulation, the present article seeks to evaluate the impact of fixed capital stock, labor productivity, and the mass of profits on the dynamics of employment in Colombia from 1965 to 2019 using a Vector Error Correction Model. The results show that the level of employment exhibits a significant long-term relationship with both the fixed capital stock and labor productivity. In line with Marx’s theory, employment expands with fixed capital stock and contracts with labor productivity. In turn, the mass of profits has positive effects on both the capital stock and labor productivity. The empirical findings also support the existence of Marx’s biased technical change as well as a negative feedback effect from employment to profits. JEL Classification: J21, C21, C22, B51

Suggested Citation

  • Carlos Alberto Duque Garcia, 2023. "Dynamics of Employment and Accumulation of Capital in Colombia, 1965–2019: An Econometric Analysis," Review of Radical Political Economics, Union for Radical Political Economics, vol. 55(4), pages 591-604, December.
    • Handle: RePEc:sae:reorpe:v:55:y:2023:i:4:p:591-604
    DOI: 10.1177/04866134231180259
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    References listed on IDEAS

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    5. Richard K. Green, 1997. "Follow the Leader: How Changes in Residential and Non‐residential Investment Predict Changes in GDP," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 25(2), pages 253-270, June.
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    More about this item

    Keywords

    employment level; accumulation of capital; productivity of labor; VEC model;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • B51 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Socialist; Marxian; Sraffian

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