The Balance of Payments Constraint as an Explanation of International Growth Rate Differences
| Autor: | Thirlwall, Anthony P. |
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| Rok vydání: | 1979 |
| Předmět: | |
| Zdroj: | PSL Quarterly Review, Vol 64, Iss 259, Pp 429-438 (2011) |
| Popis: | The paper shows that if long-run balance of payments equilibrium on current account is a requirement then a country's long run growth rate can be approximated by the ratio of the growth of exports to the income elasticity of demand for imports. The model fits well the experience of eighteen OECD countries. It is output, not relative prices, that adjusts the balance of payments, contrary to the neoclassical orthodoxy. Growth can be demand constained by the balance of payments. Paper originally published in vol. 32 n. 128 (1979), pp. 45-53, of BNL Quarterly Review. JEL Codes: F32, F43 PSL Quarterly Review, V. 64, N. 259 (2011) |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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