IDEAS home Printed from https://ideas.repec.org/a/psl/bnlqrr/198333.html
   My bibliography  Save this article

Foreign trade elasticities in centre-periphery models of growth and development

Author

Listed:
  • Anthony Philip Thirlwall

Abstract

The Author looks at the difference in growth rates among countries and argues that they can be traced to the strength of the balance of payments position, determined largely by the propensity to export relative to the propensity to import. Relative growth performance, thus, can be understood by looking to income elasticities of demand for exports and imports. This insight into the process of income determination in open economies, found in Harrod as well as in the literature on economic development, is developed through so-called centre-periphery models of growth and development. However, their essential conclusions were already contained in the early classic papers. The author concentrates on three of them (prebisch, seers, kaldor) to argue that a country’s growth rate relative to another’s can be approximated by the ratio of its income elasticity of demand for exports to its income elasticity of demand for imports.

Suggested Citation

  • Anthony Philip Thirlwall, 1983. "Foreign trade elasticities in centre-periphery models of growth and development," Banca Nazionale del Lavoro Quarterly Review, Banca Nazionale del Lavoro, vol. 36(146), pages 249-261.
  • Handle: RePEc:psl:bnlqrr:1983:33
    as

    Download full text from publisher

    File URL: http://ojs.uniroma1.it/index.php/PSLQuarterlyReview/article/view/10779/10658
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. 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.
    2. Dixon, R & Thirlwall, A P, 1975. "A Model of Regional Growth-Rate Differences on Kaldorian Lines," Oxford Economic Papers, Oxford University Press, vol. 27(2), pages 201-214, July.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Bineau, Yannick, 2008. "Équilibre extérieur et taux de change réel : apport du modèle de croissance contrainte par la balance des paiements," L'Actualité Economique, Société Canadienne de Science Economique, vol. 84(3), pages 263-285, septembre.
    2. Destefanis, Sergio, 2000. "Differenziali territoriali di produttività ed efficienza e sviluppo dualistico
      [Territorial differences in productivity and efficiency and Italian dualism]
      ," MPRA Paper 62065, University Library of Munich, Germany.
    3. AfDB AfDB, 2002. "Working Paper 63 - Trade, Trade Liberalisation and Economic Growth: Theory and Evidence," Working Paper Series 2276, African Development Bank.
    4. Anthony Thirlwall, 2002. "Working Paper 63 - Trade, Trade Liberalisation and Economic Growth: Theory and Evidence," Working Paper Series 197, African Development Bank.
    5. Ziesemer, Thomas, 1996. "Dissent on convergence : the role of public factors, international trade and path dependence," Research Memorandum 004, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
    6. A. P. Thirlwall, 2013. "Economic Growth in an Open Developing Economy," Books, Edward Elgar Publishing, number 15208, June.
    7. Salvatore D'Acunto & Sergio Destefanis & Marco Musella, 2004. "Exports, Supply Constraints and Growth: An Investigation using Regional Data," International Review of Applied Economics, Taylor & Francis Journals, vol. 18(2), pages 167-189.
    8. Thomas, Ziesemer, 1998. "A History of Economic Theorizing on the Prebisch-Singer Thesis," MPRA Paper 60502, University Library of Munich, Germany.
    9. Giulio Guarini, 2015. "Complementarity between environmental efficiency and labour productivity in a cumulative growth process," PSL Quarterly Review, Economia civile, vol. 68(272), pages 41-56.
    10. Gilberto A. Libânio, 2003. "Trade, specialization and growth: a preliminary assessment of the Brazilian experience in the nineties," Textos para Discussão Cedeplar-UFMG td220, Cedeplar, Universidade Federal de Minas Gerais.
    11. AfDB AfDB, 2002. "Working Paper 63 - Trade, Trade Liberalisation and Economic Growth: Theory and Evidence," Working Paper Series 2196, African Development Bank.
    12. Ricardo Azevedo Araujo & Gilberto Tadeu Lima, 2007. "A structural economic dynamics approach to balance-of-payments-constrained growth," Cambridge Journal of Economics, Oxford University Press, vol. 31(5), pages 755-774, September.

    More about this item

    Keywords

    growth rates; balance of payments; exports; centre-periphery models imports; Harrod;

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:psl:bnlqrr:1983:33. 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: (Carlo D'Ippoliti). General contact details of provider: http://www.economiacivile.it .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.