Economic Growth and the Rate of Profit in Colombia 1967-2019: A VAR Time-Series Analysis

Invitado: Carlos Alberto Duque García

Ph.D. Student, Economics - Mexico City


This article seeks to evaluate the rate of profit and the rate of accumulation as determinants of the growth rate in Colombia during 1967–2019, using a generalized vector autoregressive (VAR) model. We find that both variables are statistically significant and, in concordance with Marxian theory predictions, affect positively the growth rate. We also identify direct impacts of the growth rate over the profit rate and the accumulation rate as well as an economic relevant relationship between these latter variables.