Thirlwall, A.P. and Pacheco-Lopez, Penelope (2006) 177. Trade Liberalisation, the Income Elasticity of Demand for Imports and Growth in Latin America. Journal of Post Keynesian Economics, 29 (1). pp. 41-66. ISSN 0160-3477 .
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This paper applies the balance-of-payments-constrained growth model to 17 countries of Latin America over the period 1977-2002. The crucial parameter to estimate is the income elasticity of demand for imports, which is done for Latin America as a whole and for individual countries. As well as estimating over the whole period, the technique of rolling regressions is also used to test whether a trend increase can be discerned as a result of trade liberalization. A trend increase is found for Latin America as a whole and for some individual countries, and the balance-of-payments equilibrium growth rate is a good predictor of growth performance in nine of the 17 countries. There is no evidence that the balance-of-payments equilibrium growth rate has increased in Latin America as a result of trade liberalization.
|Uncontrolled keywords:||balance of payments; growth; Latin America; trade liberalization|
|Subjects:||H Social Sciences > HB Economic Theory|
|Divisions:||Faculties > Social Sciences > School of Economics|
|Depositing User:||Tony Thirlwall|
|Date Deposited:||01 Sep 2008 11:36|
|Last Modified:||14 Jan 2010 14:23|
|Resource URI:||http://kar.kent.ac.uk/id/eprint/6246 (The current URI for this page, for reference purposes)|
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