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The aim is to integrate the dynamics of asset accumulation for open economies with the conflict theory of wage and price formation. This synthesis allows us to assess the results obtained in the mainstream asset market models based on an atomistic view of the economy, analyse the influence of market power in product and labour markets on aggregate economic activity, and to investigate new sources of potential instability.

This article provides an account of the status of Government efforts in the mobilisation of development funds and the way these funds have been allocated within a specified framework of the Second National Development Plan for development. The specific aims of the research were:‐

This chapter starts from the issue of debt in the context of a national economy by contrasting two opposed views: policy prescriptions based on the Washington Consensus prioritize low public debt and a limited role of the government in the development process whereas a more heterodox view considers debt as logical, necessary, and helpful in order to allow the government to pursue an ambitious growth and development strategy. However, things change when the economy is considered in its international context: foreign debt is different from domestic debt and while the same heterodox analysis still rejects the Washington Consensus' demand for trade and financial liberalization, its own ambitious development strategies for the domestic economy get constrained by trade deficits, the threat of capital flight, and exchange rate instability. The question arises how the government can still significantly contribute to economic development beyond the limits of a purely private sector–driven approach. This is why this chapter reviews proposals to relax or overcome the balance-of-payments constraint. Finally, it considers a reform of international payments, which can be implemented by a single country unilaterally, and which enables it to stabilize its current account, avoid foreign debt accumulation, and support domestic development strategies.

The purpose of this paper is to contribute to the literature on demand-driven Keynesian growth in open economies by developing a formal model that combines Dixon and Thirlwall’s (1975) export-led growth model and Thirlwall’s (1979) balance-of-payments constrained growth model into a more general specification. Then, based on the model developed in this paper, the authors analyse more broadly some important issues concerning the net impact of currency depreciation on the short-run growth.

The authors build upon Dixon and Thirlwall’s (1975) export-led growth model and Thirlwall’s (1979) balance-of-payments constrained growth model in order to develop the theoretical framework. The authors also run numerical simulations to illustrate the net impact of devaluation on the short-run growth rate in different scenarios.

The authors demonstrate that the net impact of currency devaluation on growth can go either way, depending on some structural conditions such as the average share of imported intermediate inputs in prime costs of domestic firms and the institutional capacity of trade unions to set nominal wages through the bargaining process. The model also shows that the effectiveness of a competitive real exchange rate to promote growth is higher in countries where the share of labour in domestic income is also higher.

This paper provides a coherent formal starting-point for further theoretical developments on the interrelatedness between currency devaluation, income distribution and growth. These findings provide empirically testable hypothesis for future research.

The present study proposes an alternative formal solution for the theoretical problem of imposing a balance-of-payments constraint on the process of cumulative causation often incorporated in Kaldorian growth models. In terms of policy, the framework sheds further light on the relevance of income distribution and the labour market institutional framework for the dynamics of the exchange rate pass-through mechanism and allows us to map out related conditions under which currency devaluation can promote growth.

The aim of this paper is to contribute to the literature on balance‐of‐payments‐constrained growth by providing an innovative empirical evaluation of a disaggregated version of the so‐called Thirlwall's Law derived from a Pasinettian multisectoral framework.

After estimating sectoral elasticities of exports and imports for a considerable panel dataset of 90 countries over the period 1965‐1999, the authors have performed two empirical exercises. First, they grouped countries together by income level and evaluated a multisectoral balance‐of‐payments‐constrained growth model by analyzing prediction errors and mean absolute deviations. Second, the authors carried out a regression validity test on the results.

The main findings give support to the validity of the multisectoral version of Thirlwall's Law, providing therefore further understanding of the structural determinants of the uneven international development and guidance for the design of growth‐enhancing national structural policies.

The main value added of this contribution to the existing literature lies in the use of disaggregated trade data in conjunction with modern panel data econometric techniques to obtain empirical estimates on the balance‐of‐payments constraints to long‐run economic growth for an unprecedently large sample of countries.

A switching regression model is employed to test for the presence of financial constraints in the determination of oil exporters′ imports from industrial countries. The main assumption of the model is the exogenous determination of this bloc′s terms of trade. The analysis uses both discrete and smooth‐switching techniques for estimating disequilibrium models. The results on the whole indicate the importance of financial constraints in trade. Further support for the framework is provided by the fact that separate estimations for the high and low absorbers appear to suggest that revenue from trade has been of greater importance for the former category.

The analysis of the main stages of the Belarusian economy's development from 2000 to 2018 has been carried out, the main factors and limitations of economic growth considered. The known models of economic growth applied to the Belarusian economy are shown. It is grounded that the correct use of endogenous growth models based on production functions is hampered by the significant influence of exogenous factors on the Belarusian economy, and it is more preferable to use models based on the balance of payments under these conditions. The methodology for modeling the balanced economic growth based on Input–Output tables' data is proposed, the results of its use are shown. Three scenarios for the growth of the Belarusian economy until 2025 are analyzed: baseline, adverse, and target; the desired structural changes are identified for the implementation of the target scenario.