Balance-of-payments constrained growth, structural change, and the Thai economy

Nat Tharnpanich and John McCombie

Journal of Post Keynesian Economics, 2013, vol. 35, issue 4, 569-598

Abstract: This paper tests the balance-of-payments constrained growth model using Thailand as a case study. The study explicitly considers the potential existence of a structural break when estimating the model. On balance, it is found that Thailand's long-run economic growth over the period 1962-2009 is balance-of-payments constrained. Besides the positive effect of export growth, changes in the terms of trade also played a role, but had an adverse effect on the growth performance of Thailand. Thailand's economic growth declined following the Asian financial crisis in 1998 and this study reveals that the root cause of this disappointing performance lay in the dramatic decline in the world income elasticity of demand for its manufacturing exports. This is likely to be the result of an adverse structural change within the sector.

Date: 2013
References: Add references at CitEc
Citations: View citations in EconPapers (18)

Downloads: (external link)
http://hdl.handle.net/10.2753/PKE0160-3477350404 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mes:postke:v:35:y:2013:i:4:p:569-598

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/MPKE20

DOI: 10.2753/PKE0160-3477350404

Access Statistics for this article

More articles in Journal of Post Keynesian Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().