Balance-­of­-payments   constrained   growth   in   the   case   of   the  Bulgarian economy: an empirical study

Abstract: Post­Keynesian economists state that there is a direct relationship between balance­-of­-payments and economic growth. Anthony Thirlwall, in particular, has formulated a model which defines the balance­-of­-payments equilibrium growth rate that would allow the economy to grow in the long­-run sustainably without deteriorating their external balance or entering major debts. The purpose of this study is to investigate to what extent Thirlwall's law applies to historical data from the Bulgarian economy.