Original article International Economics

Balance-of-payments constraints on Bulgarian economic growth

Elena Spasova - New Bulgarian University
Received: 10 Jun 2022
Revised:
Published:
Downloads: 0
Citations: 0
Issue 2/2016
JEL F43 F41 F32
DOI https://doi.org/10.56497/etj1661204

Abstract

The balance-of-payments constrained growth theory of Thirlwall is presented and its main presumptions and conclusions on growth sustainability in the long run are outlined. The validity of the theory is tested in the case of Bulgaria in the period of 1994-2014 through assessment of the Thirlwall’s Law and the model of Bertola et al. The sectoral coefficients of price and income elasticity of demand of Bulgarian exports in the period of 2001-2014 are calculated and analyzed. The estimated results are used for an assessment of the potential of Bulgaria to achieve sustainable catching-up growth levels. Specific recommendations on that matter are provided.

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