FOREIGN DEBT, EXPORT DYNAMICS AND THE THIRLWALL’S LAW

I ndependently of capital movements, the so called Thirlwalls’s Law (Thirlwall, 1979) is theoretically a robust result in the long run. When the rate of growth of exports is equal or greater than the rate of growth of foreign debt, there is a convergence of the domestic rate of growth of Gross Domestic Product (DGP) to the original and simplest Thirlwall’s rate of growth. When, furthermore, the rate of growth of foreign debt is equal or lower than the Thirlwall’s rate of growth, the economy is solvent and the rate of growth of GDP converges to the Thirlwall’s law.