Balance-of-payments constrained economic growth: the case of Mexico
An analytical model for balance-of-payment constraints is developed to analyse the economic crisis which swept the entire Mexican region during the early 1980s. Analytical results suggest that a modification of the long-term income multipliers of the proposed framework may be effected by implementing a long-term constant ratio of the current account to nominal gross domestic product. It is further shown that Mexico's economic instability was largely caused by the inadequacy of foreign exchange resources necessary in driving domestic growth.
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- Peter Skott & Paul Auerbach, 1995. "Cumulative Causation and the "New" Theories of Economic Growth," Journal of Post Keynesian Economics, M.E. Sharpe, Inc., vol. 17(3), pages 381-402, April.
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- Anthony Philip Thirlwall, 1979.
"The Balance of Payments Constraint as an Explanation of International Growth Rate Differences,"
Banca Nazionale del Lavoro Quarterly Review,
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- Anthony P. Thirlwall, 2011. "The Balance of Payments Constraint as an Explanation of International Growth Rate Differences," PSL Quarterly Review, Economia civile, vol. 64(259), pages 429-438.
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