TESTING THE THIRLWALL’S LAW FOR OECD COUNTRIES (1990-2014)

Abstract

The Foreign demand have significant influence on economic growth, production and foreign trade volumes. A. P. Thirlwall (1979) noted the importance of external demand on economic growth. This approach, found in the economics literature as the Thirlwall Law, has been extensively used in the analysis of open macroeconomic relations.
In this study, the validity of Thirlwall's Law for OECD countries was analyzed by the help of dynamic panel data methods (PMG, MG and DFE ), one of the best research methods for families tested with the help of research conducted between 1990 and 2014. According to findings of this paper; In the OECD countries it was found that the Thirlwall Law is valid for the period 1990-2014 and external demand is an important variable for economic growth for these countries.