Advanced Search
MyIDEAS: Login

Growth and the external constraint: lessons from the Spanish case

Contents:

Author Info

  • Jose Antonio Alonso

Abstract

The present article attempts to determine the role played by the balance-of-payments constraint on economic growth in Spain (1960-94), using cointegration techniques. This empirical exercise also serves to reveal some shortcomings in the usual procedures for estimating Thirlwall's Law. In particular, the Spanish case reveals how important it is to introduce a variable that expresses the competitiveness gains generated by improvements in quality of the goods and services into the export function. It also demonstrates the inadequate simplification entailed in an a priori exclusion of relative prices in external equilibrium equation. Not taking these two aspects into consideration may give rise to an erroneous confirmation of Thirlwall's Law, especially if, as in the Spanish case, both effects offset each other. Finally, if the aim is to analyse long-term relationships between variables, it would seem advisable to use procedures, such as cointegration, with variables in levels.

Download Info

If 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.
File URL: http://www.tandfonline.com/doi/abs/10.1080/000368499324471
Download Restriction: Access to full text is restricted to subscribers.

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 Info

Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 31 (1999)
Issue (Month): 2 ()
Pages: 245-253

as in new window
Handle: RePEc:taf:applec:v:31:y:1999:i:2:p:245-253

Contact details of provider:
Web page: http://www.tandfonline.com/RAEC20

Order Information:
Web: http://www.tandfonline.com/pricing/journal/RAEC20

Related research

Keywords:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Salvador Barrios & Holger Görg & Eric Strobl, . "Explaining Firms' Export Behaviour: The Role of R&D and Spillovers," Working Papers 2001-12, FEDEA.
  2. Salvador Barrios, . "Foreign Direct Investment and Productivity Spillovers," Working Papers 2000-19, FEDEA.
  3. Oscar Bajo-Rubio, 2010. "The balance-of-payments constraint on economic growth in a long-term perspective: Spain, 1850-2000," Working Papers 10-10, Asociación Española de Economía y Finanzas Internacionales.
  4. Salvador Barrios & Eric Strobl, 2002. "Foreign direct investment and productivity spillovers: Evidence from the Spanish experience," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 138(3), pages 459-481, September.
  5. Douglas Alcantara Alencar & Eduardo Strachman, 2014. "Investimento Direto Estrangeiro E Balanço De Pagamentos, No Brasil: 1994 E 2008," Anais do XLI Encontro Nacional de Economia [Proceedings of the 41th Brazilian Economics Meeting] 048, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
  6. Anthony P. Thirlwall, 2011. "Balance of payments constrained growth models: history and overview," PSL Quarterly Review, Economia civile, vol. 64(259), pages 307-351.
  7. Julio Herrera & Jesus Santamaria, 2001. "The external constraint to the economic growth in three blocks of the world economy," ERSA conference papers ersa01p244, European Regional Science Association.
  8. Lanzafame, Matteo, 2011. "The balance of payments constrained growth rate and the natural rate of growth: new empirical evidence," MPRA Paper 33130, University Library of Munich, Germany.
  9. Salvador Barrios, . "Foreign Direct Investment Productivity Spillovers. Evidence From the Spanish Experience," Studies on the Spanish Economy 86, FEDEA.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:taf:applec:v:31:y:1999:i:2:p:245-253. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).

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.