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,Essays on Balance of PaymentsConstrained Growth
There are many theories of why output growth rates differ between countries.
Mainstream, orthodox growth theory focuses on the supply side of the economy.
An alternative approach is to consider factors of production and productivity
growth as largely endogenous to demand, and to focus on demand constraints.
In open economies, the balance of payments and foreign exchange are often a
serious constraint.
The contributions in this book contain various theoretical papers which develop
the model of balance of payments constrained growth, and then apply it to analyse
the long-run growth performance of several developed and developing countries.
The book will be of interest to all economists and policy makers interested in the
differential growth performance of nations, and the link between trade, the balance
of payments and economic growth.
J. S. L. McCombie is a Fellow in Economics at Downing College, Cambridge,
and the Director of the Centre for Economic and Public Policy at the Department
of Land Economy, the University of Cambridge.
A. P. Thirlwall is Professor of Applied Economics at the University of Kent, UK.
He has been an advisor to several government departments, and a consultant to
many international development organisations.
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