Balance-of-payments-constrained economic growth in Brazil

This paper applies the Thirlwall’s balance-of-payments constraint model to Brazilian economic growth in the period 1955-98, using cointegration technique. According to Thirlwall (1979) and MacCombie and Thirlwall (1994) differences in long-term economic growth among countries can be explained by a d...

Descripción completa

Detalles Bibliográficos
Autor: Jayme Jr., Frederico Gonzaga
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2003
País:Brasil
Institución:EDITORA 34
Repositorio:Revista de Economia Política
Idioma:inglés
OAI Identifier:oai:ojs2.centrodeeconomiapolitica.org:article/888
Acceso en línea:https://centrodeeconomiapolitica.org.br/repojs/index.php/journal/article/view/888
Access Level:acceso abierto
Palabra clave:Restrição de balança de pagamentos
crescimento
economia pós-Keynesiana
Balance of payments constraint
growth
post Keynesian economics
Descripción
Sumario:This paper applies the Thirlwall’s balance-of-payments constraint model to Brazilian economic growth in the period 1955-98, using cointegration technique. According to Thirlwall (1979) and MacCombie and Thirlwall (1994) differences in long-term economic growth among countries can be explained by a demand induced theory of economic growth. The model is tested on the Brazilian economy after industrial take- off in 1955 until 1998 using the cointegration technique and a vector error correction (VEC) representation to find the dynamic responses of exports to GDP. The results show that there is a positive cointegration between growth in exports and long-term economic growth in Brazil, which support the fact external factors constraint Brazilian economic growth. JEL Classification: E12; O10.