Abstract

This paper deals with A. Young`s approach to the explanation of increasing returns, devoting attention not only to his 1928 famous article, but also to other interesting indications which can be found in his previous works. It argues that the logic of Young`s analysis is based on a multisectorial model subject to quantitative and qualitative transformations. Such a view allows us to understand 1) the emphasis, posed by the author, on propositions (that would have to be fulfilled) among different productives to ensure balanced economic expansion; 2) the attempt (made by the author in the appendix to 1928 article) to explain the economic system dynamics in presence of different intersectoral growth rates. The main conclusion is that Young`s theoretical contribution should be regarded as one of the first examples of structural economic dynamics, thus resulting quite unconformable to the neoclassical theoretical paradigm.