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The slowing of growth in France: an interpretation based on Thirlwall’s law

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  • Sebastien Charles
  • Thomas Dallery
  • Jonathan Marie

Abstract

In this paper, we evaluate the French balance-of-payments constrained growth rate and we compare it with the effective growth rate. Empirically, we show that France is experiencing, simultaneously to its European integration, a substantial increase in the income elasticity of demand for imports and a collapse in the growth rate of its exports. Within the balance-of-payments constrained growth approach, this twofold negative effect is a major obstacle to true economic recovery and full employment.

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  • Sebastien Charles & Thomas Dallery & Jonathan Marie, 2022. "The slowing of growth in France: an interpretation based on Thirlwall’s law," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 45(1), pages 100-129, January.
    • Handle: RePEc:mes:postke:v:45:y:2022:i:1:p:100-129
    DOI: 10.1080/01603477.2020.1794903
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