Demand-led Growth Decompositions and Its Uses to Explain Growth Experiences

The objective of this paper is to provide a survey on the methods of demand-led decomposition and its different uses on the analyses of the patterns of growth, as well as some criticisms and limitations of such methods and analyses. We will present and compare the decompositions based on the net-exports method (used mainly by neo-Kaleckians and Comparative Political Economy), the attribution method, and the ‘Supermultiplier method’ (used mainly by some Sraffians). We will then present how such decompositions are used to discuss the patterns of growth of some countries, such as the demand and growth regimes, the growth models, as well as the insights provided by the supermultiplier analysis. We will present and discuss some criticisms and limitations of such decomposition methods and its uses, based on the literature.