IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

Economic growth and the long run balance of payments constraint in Spain

Listed author(s):
  • Jose M. Serrano Sanz
  • Marcela Sabate
  • Dolores Gadea

The Thirlwall's Law test has been extensively employed in order to explain, from the demand side, the differences in rates of economic growth between countries. In this paper the test is put to an alternative use, namely to explain the uneven economic growth experienced in one single country, Spain, during two different periods, 1940-59 and 1960-85. Specifically, we seek to determine whether the liberalization of Spanish trade which preceded its integration into the EEC (1960-85) - insofar as this liberalization increased the possibilities of placing national production in the foreign market-might explain the higher rate of economic growth enjoyed during this period, as compared with the earlier period of economic autarky (1940-59). To that end, we estimate the corresponding export and import demand functions (using the Autoregressive Distributed Lags methodology and the cointegration approach of Johansen) and apply the McCornbie test. We conclude that the Spanish balance of payments, although determining the difference in potential growth between the two periods, did not function, strictu sensu, as a demand constraint. Rather, the responsibility for this lay with prices, which relaxed the limits imposed by foreign demand on growth during the autarky period and tightened them during the liberalization period.

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:
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.

Article provided by Taylor & Francis Journals in its journal The Journal of International Trade & Economic Development.

Volume (Year): 8 (1999)
Issue (Month): 4 ()
Pages: 389-417

in new window

Handle: RePEc:taf:jitecd:v:8:y:1999:i:4:p:389-417
DOI: 10.1080/09638199900000024
Contact details of provider: Web page:

Order Information: Web:

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

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

When requesting a correction, please mention this item's handle: RePEc:taf:jitecd:v:8:y:1999:i:4:p:389-417. 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: (Chris Longhurst)

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.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.