Balance of payments constrained growth model: an examination of Thirlwall's Hypothesis using McCombie's Individual Country Method

Balance of payments constrained growth model: an examination of Thirlwall's Hypothesis using McCombie's Individual Country Method

The balance of payments constrained growth (BOP) model is tested using the McCombie's cross-country and individual country test for 90 developed and developing countries for the period 1980 to 2000, and the McCombie's test is extended using export elasticity. If in the long run, the growth...

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Main Author: Mat Ghani, Gairuzazmi
Format: Article
Language:English
Published: Taylor and Francis 2006
Subjects:
HB3711 Business cycles. Economic fluctuations
Online Access:http://irep.iium.edu.my/424/
http://irep.iium.edu.my/424/
http://irep.iium.edu.my/424/1/Balance_of_payments_constrained_growth_model.pdf
id iium-424
recordtype eprints
spelling iium-4242011-06-17T04:16:08Z http://irep.iium.edu.my/424/ Balance of payments constrained growth model: an examination of Thirlwall's Hypothesis using McCombie's Individual Country Method Mat Ghani, Gairuzazmi HB3711 Business cycles. Economic fluctuations The balance of payments constrained growth (BOP) model is tested using the McCombie's cross-country and individual country test for 90 developed and developing countries for the period 1980 to 2000, and the McCombie's test is extended using export elasticity. If in the long run, the growth of exports is equal to the growth of imports and the affect of prices are not statistically significant, the estimated import elasticity from time series regression should not be statistically different from the BOP implied import elasticity, this also implied that the estimated export elasticity, also should not be statistically different from the BOP implied export elasticity. However, the finding shows that for only about 45% of the countries under study the individual country test is accepted even though cross-country analysis support the BOP model. Furthermore, for some countries where its estimated and implied import elasticity are not statistically different, its estimated and implied export elasticity are statistically different and vice-versa. Taylor and Francis 2006-10 Article PeerReviewed application/pdf en http://irep.iium.edu.my/424/1/Balance_of_payments_constrained_growth_model.pdf Mat Ghani, Gairuzazmi (2006) Balance of payments constrained growth model: an examination of Thirlwall's Hypothesis using McCombie's Individual Country Method. Applied Economics Letters, 13 (12). pp. 763-768. ISSN 1350-4851 http://www.informaworld.com/smpp/content~db=all~content=a758350142~frm=titlelink
repository_type Digital Repository
institution_category Local University
institution International Islamic University Malaysia
building IIUM Repository
collection Online Access
language English
topic HB3711 Business cycles. Economic fluctuations
spellingShingle HB3711 Business cycles. Economic fluctuations
Mat Ghani, Gairuzazmi
Balance of payments constrained growth model: an examination of Thirlwall's Hypothesis using McCombie's Individual Country Method
description The balance of payments constrained growth (BOP) model is tested using the McCombie's cross-country and individual country test for 90 developed and developing countries for the period 1980 to 2000, and the McCombie's test is extended using export elasticity. If in the long run, the growth of exports is equal to the growth of imports and the affect of prices are not statistically significant, the estimated import elasticity from time series regression should not be statistically different from the BOP implied import elasticity, this also implied that the estimated export elasticity, also should not be statistically different from the BOP implied export elasticity. However, the finding shows that for only about 45% of the countries under study the individual country test is accepted even though cross-country analysis support the BOP model. Furthermore, for some countries where its estimated and implied import elasticity are not statistically different, its estimated and implied export elasticity are statistically different and vice-versa.
format Article
author Mat Ghani, Gairuzazmi
author_facet Mat Ghani, Gairuzazmi
author_sort Mat Ghani, Gairuzazmi
title Balance of payments constrained growth model: an examination of Thirlwall's Hypothesis using McCombie's Individual Country Method
title_short Balance of payments constrained growth model: an examination of Thirlwall's Hypothesis using McCombie's Individual Country Method
title_full Balance of payments constrained growth model: an examination of Thirlwall's Hypothesis using McCombie's Individual Country Method
title_fullStr Balance of payments constrained growth model: an examination of Thirlwall's Hypothesis using McCombie's Individual Country Method
title_full_unstemmed Balance of payments constrained growth model: an examination of Thirlwall's Hypothesis using McCombie's Individual Country Method
title_sort balance of payments constrained growth model: an examination of thirlwall's hypothesis using mccombie's individual country method
publisher Taylor and Francis
publishDate 2006
url http://irep.iium.edu.my/424/
http://irep.iium.edu.my/424/
http://irep.iium.edu.my/424/1/Balance_of_payments_constrained_growth_model.pdf
first_indexed 2023-09-18T20:07:33Z
last_indexed 2023-09-18T20:07:33Z
_version_ 1777407259635089408

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