The Balance of Payments Constraint as an Explanation of International Growth Rate Differences
Anthony Thirlwall
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.
Τόμος:
32
Έτος:
1979
Έκδοση:
128
Εκδότης:
BNL Quarterly Review
Γλώσσα:
english
Σελίδες:
8
Σειρές:
BNL Quarterly Review
Αρχείο:
PDF, 372 KB
IPFS:
,
english, 1979