This contribution focuses on the scope for indeterminacies that originate f
rom global capital stock externalities in a reference two-sector growth mod
el. A set of sufficient conditions for local indeterminacies and oscillatio
ns is established and builds upon a new class of intersectoral dependency i
n competitive economies, The uniqueness of the steady state is also questio
ned and conditions for global indeterminacies are delimited. The underlying
features of preferences and sectoral production technologies are assessed
in this paper. It is shown that the principal attribute of a two-sector env
ironment, i.e., a non-linear production possibility frontier, directly unde
rlies indeterminacies. It is the influence of external effects on the relat
ive price of the investment good that leads to these phenomena, a key role
being detected in this perspective for external effects in the consumption
good sector. (C) 2001 Elsevier Science B.V. All rights reserved.