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Foreign trade elasticities in centre-periphery models of growth and development

Thirlwall, A.P. (1983) Foreign trade elasticities in centre-periphery models of growth and development. PSL Quarterly Review, 36 (146). pp. 249-261. ISSN 2037-3643. (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:60889)

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 Author looks at the difference in growth rates among countries and argues that they can be traced to the strength of the balance of payments position, determined largely by the propensity to export relative to the propensity to import. Relative growth performance, thus, can be understood by looking to income elasticities of demand for exports and imports. This insight into the process of income determination in open economies, found in Harrod as well as in the literature on economic development, is developed through so-called centre-periphery models of growth and development. However, their essential conclusions were already contained in the early classic papers. The author concentrates on three of them (prebisch, seers, kaldor) to argue that a country’s growth rate relative to another’s can be approximated by the ratio of its income elasticity of demand for exports to its income elasticity of demand for imports.

Item Type: Article
Divisions: Faculties > Social Sciences > School of Economics
Depositing User: Anthony Thirlwall
Date Deposited: 13 Mar 2017 15:56 UTC
Last Modified: 08 Feb 2020 04:09 UTC
Resource URI: https://kar.kent.ac.uk/id/eprint/60889 (The current URI for this page, for reference purposes)
Thirlwall, A.P.: https://orcid.org/0000-0002-1661-2218
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