Dolapo Ojo - Academia.edu (original) (raw)
Uploads
Papers by Dolapo Ojo
Science Forum (Journal of Pure and Applied Sciences), 2021
The thirlwall law is also called the balance of payment constraints model. The basic model is anc... more The thirlwall law is also called the balance of payment constraints model. The basic model is anchored on the dynamic Harrod foreign trade multiplier, which is also known as Thirlwall law or the 45 degree rule, developed through the pioneer efforts of Thirlwall (1979). On the assumption of constant relative prices and absence of capital flows, the basic dynamic Harrod foreign trade multiplier postulates that the rate of growth of a country can be predicted by considering the ratio of the rate of growth of a country's exports volume to its income elasticity of demand for imports (that is growth rate of exports volume divided by income elasticity of demand for imports can be used as a basis for predicting a country's growth rate). Thereby this law concludes that the growth rate of a country is balance of payment constrained. The broad objective of this study is to test for validity of Thirlwall law on the Nigeria economy that is to check if this law is applicable to the econom...
Science Forum (Journal of Pure and Applied Sciences), 2021
The thirlwall law is also called the balance of payment constraints model. The basic model is anc... more The thirlwall law is also called the balance of payment constraints model. The basic model is anchored on the dynamic Harrod foreign trade multiplier, which is also known as Thirlwall law or the 45 degree rule, developed through the pioneer efforts of Thirlwall (1979). On the assumption of constant relative prices and absence of capital flows, the basic dynamic Harrod foreign trade multiplier postulates that the rate of growth of a country can be predicted by considering the ratio of the rate of growth of a country's exports volume to its income elasticity of demand for imports (that is growth rate of exports volume divided by income elasticity of demand for imports can be used as a basis for predicting a country's growth rate). Thereby this law concludes that the growth rate of a country is balance of payment constrained. The broad objective of this study is to test for validity of Thirlwall law on the Nigeria economy that is to check if this law is applicable to the econom...