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Balance-of-payments constraints on Bulgarian economic growth

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  • Elena Spasova

Abstract

The balance-of-payments constrained growth theory of Thirlwall is presented and its main presumptions and conclusions on growth sustainability in the long run are outlined. The validity of the theory is tested in the case of Bulgaria in the period of 1994-2014 through assessment of the Thirlwall’s Law and the model of Bertola et al. The sectoral coefficients of price and income elasticity of demand of Bulgarian exports in the period of 2001-2014 are calculated and analyzed. The estimated results are used for an assessment of the potential of Bulgaria to achieve sustainable catching-up growth levels. Specific recommendations on that matter are provided.

Suggested Citation

  • Elena Spasova, 2016. "Balance-of-payments constraints on Bulgarian economic growth," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 2, pages 90-108.
    • Handle: RePEc:bas:econth:y:2016:i:2:p:90-108
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    References listed on IDEAS

    as
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    More about this item

    JEL classification:

    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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