1999
DOI: 10.1080/000368499324471
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Growth and the external constraint: lessons from the Spanish case

Abstract: The present article attempts to determine the role played by the balance-of-payments constraint on economic growth in Spain (1960-94), using cointegration techniques. This empirical exercise also serves to reveal some shortcomings in the usual procedures for estimating Thirlwall's Law. In particular, the Spanish case reveals how important it is to introduce a variable that expresses the competitiveness gains generated by improvements in quality of the goods and services into the export function. It also demons… Show more

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Cited by 43 publications
(36 citation statements)
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“…OECD ( 1999): Research and development in industry: expenditure and researchers, scientists and engineers, 1976-1997 Non-production workers / total number of workers Skills 2…”
Section: Resultsmentioning
confidence: 99%
See 1 more Smart Citation
“…OECD ( 1999): Research and development in industry: expenditure and researchers, scientists and engineers, 1976-1997 Non-production workers / total number of workers Skills 2…”
Section: Resultsmentioning
confidence: 99%
“…Since its accession to the European Community in 1986, Spain has experienced a considerable deterioration in its trade balance as foreign trade and investment were liberalised (see, for example, De la Dehesa et al, 1991;Herce et al, 1998). The low level of international competitiveness of Spanish firms has been blamed as the main factor behind this growing trade deficit (Martin, 2000), which appears to have partially constrained economic growth, as recently shown by Alonso (1999). With ever increasing competition from other European countries, especially in modern industries, an improvement in competitiveness to European efficiency levels and a strong domestic export base remains a high priority among policy makers and economists.…”
Section: Introductionmentioning
confidence: 99%
“…And the long run relationship between observed growth rates and those predicted by Thirlwall's Law remains rigorously untested. This is exactly the thesis advocated by Alonso (1999). As an alternative, Alonso proposes the estimation of a long series of growth rates consistent with balance-of-payments equilibrium and testing if this series and that of actual growth rates cointegrate.…”
Section: Introductionmentioning
confidence: 99%
“…This is, however, only a partial solution. A second and potentially more serious problem stems from biased samples of countries included in the pooled regression, which can lead to the rejection of the balance-of-4 See, for instance, Atesoglu (1993Atesoglu ( , 1994 and Alonso (1999). 5 One way to avoid the influence of short-run fluctuation can be found in Atesoglu (1993-4).…”
mentioning
confidence: 99%
“…And this was the case for eight of ten countries in the sample. Other works, using cointegration techniques, also have tested for the long-run adjustment of actual income to BoP constrained income (Alonso, 1999;Bagnai, 2008;and Britto and McCombie, 2009), while other studies have explicitly tested the adjustment of income to BoP disequilibria (Garcimartín et al, 2008).…”
Section: Thirlwall's Law and Its Limitsmentioning
confidence: 99%