Does the balance of payments constrain economic growth?: Some evidence for the new eu members

• Autores: Óscar Bajo Rubio, María del Carmen Díaz Roldán
• Localización: Papeles de trabajo del Instituto de Estudios Fiscales. Serie economía, ISSN 1578-0252, Nº 1, 2009, págs. 3-18
• Idioma: inglés
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• Resumen

  • The balance of payments can act as a constraint to the rate of growth of output, since it puts a limit to the growth in the level of demand to which supply can adapt. In this paper we examine this issue for the case of several transition countries, namely, those Central and Eastern European countries that joined the EU in 2004, and calculate their balance of payments-constrained growth rates.

    By comparing these balance of payments-constrained growth rates with the actual growth rates we would be able to assess whether the balance of payments has acted as a constraint to economic growth in the countries analyzed.