Thirlwall's law and the two-gap model
This paper puts forward a unified model of two of the most relevant demand-based explanations of economic growth—ThirlwalVs law and the two-gap model. Under certain specifications, it is shown that ThirlwalVs law extended with capital flows is equivalent to the "external gap." Our unified...
- Autores:
- Tipo de recurso:
- Article of journal
- Fecha de publicación:
- 2009
- Institución:
- Universidad de Bogotá Jorge Tadeo Lozano
- Repositorio:
- Expeditio: repositorio UTadeo
- Idioma:
- eng
- OAI Identifier:
- oai:expeditiorepositorio.utadeo.edu.co:20.500.12010/28092
- Acceso en línea:
- https://www.jstor.org/stable/40599720
http://hdl.handle.net/20.500.12010/28092
http://expeditiorepositorio.utadeo.edu.co
- Palabra clave:
- Thirlwall's law
Desarrollo económico
Economía
Economía del conocimiento
- Rights
- License
- http://creativecommons.org/licenses/by-nc-nd/4.0
| Summary: | This paper puts forward a unified model of two of the most relevant demand-based explanations of economic growth—ThirlwalVs law and the two-gap model. Under certain specifications, it is shown that ThirlwalVs law extended with capital flows is equivalent to the "external gap." Our unified model, expressed in growth rates, is particularly useful to explain short-term growth in developing countries. Relevant policy implications are also drawn from the results. |
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