177. Trade Liberalisation, the Income Elasticity of Demand for Imports and Growth in Latin America

Thirlwall, Anthony 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 . (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)

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Abstract

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.

Item Type: Article
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: 10 Jun 2014 07:54
Resource URI: https://kar.kent.ac.uk/id/eprint/6246 (The current URI for this page, for reference purposes)
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