Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/68074
Authors: 
Pacheco-López, Penélope
Thirlwall, A. P.
Year of Publication: 
2005
Series/Report no.: 
Department of Economics Discussion Paper, University of Kent 05,06
Abstract: 
This paper applies the balance of payments constrained growth model to seventeen countries of Latin America over the period 1977-2002. The crucial parameter to estimate is the income elasticity of demand for imports which is done for Latin America as a whole, as well as for individual countries. As well as estimating over the whole period, the technique of rolling regressions is also used to test whether a trend increase can be discerned as a result of trade liberalisation. A trend increase is found for Latin America as a whole and for some individual countries, and the balance of payments equilibrium growth rate is a good predictor of growth performance in nine of the seventeen countries. There is no evidence that the balance of payments equilibrium growth rate has increased in Latin America as a result of trade liberalisation.
Subjects: 
Latin America
Trade Liberalisation
Growth
Balance of Payments
JEL: 
C21
C22
F13
F32
F43
Document Type: 
Working Paper

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