 Foreign trade elasticities in centre-periphery models of growth and developmentBNL Quarterly Review, 1983, vol. 36, issue 146, 249-261 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. Keywords: growth rates; balance of payments; exports; centre-periphery models imports; Harrod (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:psl:bnlaqr:1983:33 Ordering information: This journal article can be ordered from Access Statistics for this article BNL Quarterly Review is currently edited by Alessandro Roncaglia More articles in BNL Quarterly Review from Banca Nazionale del Lavoro |
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