Brazilian Economic Growth and Capital Flows in the Thirlwall's model: 1968-1980 and 1992-2000

Abstract

Abstrat: Capital flows are expected to be important in the process of economic growth because they relax the balance of payments constraints. Economic growth leads to an increase in the level of imports, as a result there is a necessary increase in the export level or in the volume of capital inflows as imposed by the balance of payment constraints. The goal of the present paper is to investigate how capital flows during the periods 1968-1980 and 1992-2000 have stimulated the Brazilian economy by means of Thirlwall's model, taking into consideration that income elasticity of imports changes over.