Hypothèse de Thirlwall: cas des pays de la zone Franc

Thirlwall’s hypothesis: the case of countries of the Franc Zone

Nacisse Palissy Chassem

MPRA Paper from University Library of Munich, Germany

Abstract: The purpose of this study is to test the hypothesis of Thirlwall (1979) for the countries of the Franc Zone. These countries share in common the fixed parity of their currencies against the euro. One issue that concerns most of these countries is the current account deficit. By applying the cointegration bounds test of Pesaran et al. (2001) to annual data (1970-2006), the study shows that Thirlwall's hypothesis is verified for at least 11 of the 15 countries of the Franc Zone. This result raises the question of the effectiveness of current account deficits recorded by these countries and suggests that expansionary monetary policy, strategies for export growth, reevaluation of the CFA franc against the euro would help to relax the constraint of balance of payments on demand and thus accelerate economic growth without damaging the current account in the Franc Zone.

Keywords: Thirlwall’s hypothesis; Balance of payments constrained growth rate; cointegration bounds test; Franc Zone (search for similar items in EconPapers)
JEL-codes: C32 F43 (search for similar items in EconPapers)
Date: 2011-03-31
New Economics Papers: this item is included in nep-pke
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/29990/1/MPRA_paper_29990.pdf original version (application/pdf)

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:pra:mprapa:29990

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().