TY - JOUR AU - Guerrero de Lizardi, Carlos PY - 2006/01/01 Y2 - 2024/03/29 TI - Thirlwall's law with an emphasis on the ratio of export/import income elasticities in Latin American economies during the Twentieth Century JF - Estudios Económicos de El Colegio de México JA - EE VL - 21 IS - 1 SE - Articles DO - 10.24201/ee.v21i1.159 UR - https://estudioseconomicos.colmex.mx/index.php/economicos/article/view/159 SP - 23-44 AB - <p>Using stochastic specifications that emphasize the role of the ratio of export/import income elasticities, this paper applies the balance-of-payments constraint model to nineteen Latin American countries from 1900 to 2000. The paper begins with a brief presentation of Thirlwall’s well known model. Immediately following this, we verify the existence of a long run relationship between developing economies on one hand, and the US economy on the other. To explore the short term evolution of the quantitative link between economies, a time varying model is estimated by means of an algorithm known as Kalman Filter. Mainly, the results show a diminishing the ratio of export/import income elasticities over the years, which represents an unexpected and serious feature of the new economic strategy that has already been implanted in the region.</p> ER -