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Thoughts on balance-of-payments-constrained growth after 40 years

Thirlwall, A.P. (2019) Thoughts on balance-of-payments-constrained growth after 40 years. Review of Keynesian Economics, 7 (4). pp. 554-567. ISSN 2049-5323. E-ISSN 2049-5331. (doi:10.4337/roke.2019.04.09) (KAR id:78831)


This paper considers how Thirlwall's balance-of-payments-constrained growth model has fared over the preceding 40 years. Issues dealt with include how the model fits into Harrod's closed-economy dynamic model; whether the model is a tautology; the role of the exchange rate and terms of trade in influencing the long-run growth rate, and whether capital inflows make any difference to the long-run predictions of the model. The conclusion is that it is mainly the structure of production and trade that determines the long-run growth rate of countries, within a balance-of-payments equilibrium framework, as determinants of the income elasticities of demand for exports and imports.

Item Type: Article
DOI/Identification number: 10.4337/roke.2019.04.09
Divisions: Divisions > Division of Human and Social Sciences > School of Economics
Depositing User: Anthony Thirlwall
Date Deposited: 18 Nov 2019 16:51 UTC
Last Modified: 08 Dec 2022 22:28 UTC
Resource URI: (The current URI for this page, for reference purposes)

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