On the role of relative prices and capital flows in balance-of-payments-constrained growth: the experiences of Portugal and Spain in the euro area
AbstractBroadly speaking, the balance-of-payments constraint hypothesis as developed by Thirlwall has been empirically supported. Yet it shows some shortcomings highlighted in the literature. In our opinion, two of them must be analyzed. First, temporary disequilibria and capital flows must be incorporated into the balance-of-payments-constrained growth models. Second, the role of relative prices must be made explicit, since it can be relevant even in an external constraint framework. This study is aimed at developing a model that incorporates both possibilities: temporary external disequilibria and the impact of relative prices. This model is subsequently used to analyze the evolution of the Spanish and Portuguese economies in past decades, and, in particular, the different paths shown by both countries since their accession to the euro zone.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by M.E. Sharpe, Inc. in its journal Journal of Post Keynesian Economics.
Volume (Year): 33 (2010)
Issue (Month): 2 (January)
Contact details of provider:
Web page: http://mesharpe.metapress.com/link.asp?target=journal&id=109348
exchange rate; external constraint; growth;
Other versions of this item:
- Carlos Garcimartín & Luis Rivas & Pilar García Martínez, 2010. "On the Role of Relative Prices and Capital Flows in Balance-of-Payments Constrained Growth: the Experiences of Portugal and Spain in the Euro Area," Working Papers del Instituto Complutense de Estudios Internacionales 05-10, Universidad Complutense de Madrid, Instituto Complutense de Estudios Internacionales.
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Soukiazis, Elias & Cerqueira, Pedro A. & Antunes, Micaela, 2012. "Modelling economic growth with internal and external imbalances: Empirical evidence from Portugal," Economic Modelling, Elsevier, vol. 29(2), pages 478-486.
- Elias Soukiazis & Pedro Cerqueira & Micaela Antunes, 2012. "Causes of the Decline of Economic Growth in Italy and the Responsibility of EURO. A Balance-of-Payments Approach," GEMF Working Papers 2012-03, GEMF - Faculdade de Economia, Universidade de Coimbra.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Nguyen).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.