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Periodical article | Leiden University catalogue | WorldCat |
Title: | The Balance-of-Payments Constraint and Growth Rate Differences among African and East Asian Economies |
Author: | Hussain, M. Nureldin |
Year: | 1999 |
Periodical: | African Development Review |
Volume: | 11 |
Issue: | 1 |
Period: | June |
Pages: | 103-137 |
Language: | English |
Geographic term: | Africa |
Subjects: | balance of payments Economics and Trade Development and Technology |
External link: | https://onlinelibrary.wiley.com/doi/10.1111/1467-8268.00006/pdf |
Abstract: | The balance-of-payments constrained growth rate model postulates that the balance of payments position of a country is the main constraint on economic growth, because it imposes a limit on demand to which supply can adapt. The author applies the model to a sample of African and Asian countries with a view to explaining growth rate differences among these countries by quantifying the individual and combined contributions of export growth, capital flows and changes in the terms of trade in each case. The results obtained give support to the argument that, in contrast to Asian countries, the low growth rates in Africa are explained by low export expansion relative to the imports required for the processes of growth and development. The poor performance of African countries is attributed to the low magnitudes of their dynamic Harrod foreign trade multipliers, which are determined by the respective income elasticities of demand for exports and imports. The low dynamic Harrod foreign trade multipliers of African countries are direct products of their excessive dependency on the exportation of primary products. Bibliogr., notes, ref., sum. in English and French. |