The Remarkable Durability of Thirlwall’s Law
AbstractThis paper contemplates the robustness of Thirlwall’s Law, a parsimonious expression that relates long run equilibrium growth in any one region to the product of world income growth and the ratio of the income elasticities of demand for exports and imports. Various extensions of the balance-of-payments-constrained growth model from which Thirlwall’s Law is derived are contemplated. In each case, Thirlwall’s Law is shown to reassert itself as a good approximation of the equilibrium growth rate. It is hypothesized that this robustness helps explain the widespread empirical success of Thirlwall’s Law.
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Bibliographic InfoPaper provided by Trinity College, Department of Economics in its series Working Papers with number 1105.
Length: 37 pages
Date of creation: Jun 2011
Date of revision:
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More information through EDIRC
Thirlwall’s law; balance-of-payments-constrained growth; export-led growth; demand-led growth; natural rate of growth.;
Other versions of this item:
- O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
- E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-06-11 (All new papers)
- NEP-FDG-2011-06-11 (Financial Development & Growth)
- NEP-PKE-2011-06-11 (Post Keynesian Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Miguel A. LeÛn-Ledesma & A. P. Thirlwall, 2002.
"The endogeneity of the natural rate of growth,"
Cambridge Journal of Economics,
Oxford University Press, vol. 26(4), pages 441-459, July.
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