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The Balance of Payments Constraint as an Explanation of International Growth Rate Differences

Thirlwall, A.P. (1979) The Balance of Payments Constraint as an Explanation of International Growth Rate Differences. Banca Nazionale del Lavoro Quarterly Review, 32 (128). pp. 45-53. ISSN 0005-4607. (The full text of this publication is not currently available from this repository. You may be able to access a copy if URLs are provided) (KAR id:60880)

The full text of this publication is not currently available from this repository. You may be able to access a copy if URLs are provided. (Contact us about this Publication)

Abstract

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.

Item Type: Article
Divisions: Faculties > Social Sciences > School of Economics
Depositing User: Anthony Thirlwall
Date Deposited: 13 Mar 2017 12:07 UTC
Last Modified: 08 Feb 2020 04:09 UTC
Resource URI: https://kar.kent.ac.uk/id/eprint/60880 (The current URI for this page, for reference purposes)
Thirlwall, A.P.: https://orcid.org/0000-0002-1661-2218
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