Balance of Payments Constrained-Growth in Argentina (1976-2006)

PABLO IGNACIO CHENA

Journal of Post Keynesian Economics

M.E. Sharpe, Inc.

Lugar: New York; Año: 2014 vol. 36 p. 699 - 717

0160-3477

This article explores the linkages between the balance of payment and income growth in countries for which exports are mainly food items while the bulk of imports are industrial goods. To capture the consequence of this particular structure of international specialization, the paper proposes to modify the Balance of Payment Constrained-Growth standard rule (the Thirlwalls Law) by including the effects of different levels of the elasticity of the domestic demand for food. The paper later runs an econometric model to test Argentina?s behavior on the matter during the period 1976-2006.