Credit constraints and structure: a theoretical model of extractivism and slow-growth dynamics
ABSTRACT We develop a theoretical model that explains the relationship between credit constraints and economic growth in the context of a three-sector economy, including an “extractive” sector. The model belongs in the structuralist tradition and it is inspired by the Colombian economy. In contrast...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Editora 34
2021-07-01
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| Series: | Brazilian Journal of Political Economy |
| Subjects: | |
| Online Access: | http://www.scielo.br/scielo.php?script=sci_arttext&pid=S0101-31572021000300538&tlng=en |
| _version_ | 1798022175038373888 |
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| author | LEOPOLDO GÓMEZ-RAMÍREZ NESTOR GARZA |
| author_facet | LEOPOLDO GÓMEZ-RAMÍREZ NESTOR GARZA |
| author_sort | LEOPOLDO GÓMEZ-RAMÍREZ |
| collection | DOAJ |
| description | ABSTRACT We develop a theoretical model that explains the relationship between credit constraints and economic growth in the context of a three-sector economy, including an “extractive” sector. The model belongs in the structuralist tradition and it is inspired by the Colombian economy. In contrast to neoclassic development economics models, we prove that: 1) relaxing the credit crunch would foster formal sector growth but it may nevertheless not imply formal employment growth; and 2) the economy can converge to a pattern where the extractive sector increases while the formal one shrinks. |
| first_indexed | 2024-04-11T17:25:34Z |
| format | Article |
| id | doaj.art-4e81213f17bd4667ad98b4ece9cbe5d2 |
| institution | Directory Open Access Journal |
| issn | 1809-4538 |
| language | English |
| last_indexed | 2024-04-11T17:25:34Z |
| publishDate | 2021-07-01 |
| publisher | Editora 34 |
| record_format | Article |
| series | Brazilian Journal of Political Economy |
| spelling | doaj.art-4e81213f17bd4667ad98b4ece9cbe5d22022-12-22T04:12:19ZengEditora 34Brazilian Journal of Political Economy1809-45382021-07-0141353855410.1590/0101-31572021-3122Credit constraints and structure: a theoretical model of extractivism and slow-growth dynamicsLEOPOLDO GÓMEZ-RAMÍREZhttps://orcid.org/0000-0002-9846-6014NESTOR GARZAhttps://orcid.org/0000-0003-2038-1368ABSTRACT We develop a theoretical model that explains the relationship between credit constraints and economic growth in the context of a three-sector economy, including an “extractive” sector. The model belongs in the structuralist tradition and it is inspired by the Colombian economy. In contrast to neoclassic development economics models, we prove that: 1) relaxing the credit crunch would foster formal sector growth but it may nevertheless not imply formal employment growth; and 2) the economy can converge to a pattern where the extractive sector increases while the formal one shrinks.http://www.scielo.br/scielo.php?script=sci_arttext&pid=S0101-31572021000300538&tlng=enCredit constraintsformal employmentextractivismColombiastructuralist economics |
| spellingShingle | LEOPOLDO GÓMEZ-RAMÍREZ NESTOR GARZA Credit constraints and structure: a theoretical model of extractivism and slow-growth dynamics Brazilian Journal of Political Economy Credit constraints formal employment extractivism Colombia structuralist economics |
| title | Credit constraints and structure: a theoretical model of extractivism and slow-growth dynamics |
| title_full | Credit constraints and structure: a theoretical model of extractivism and slow-growth dynamics |
| title_fullStr | Credit constraints and structure: a theoretical model of extractivism and slow-growth dynamics |
| title_full_unstemmed | Credit constraints and structure: a theoretical model of extractivism and slow-growth dynamics |
| title_short | Credit constraints and structure: a theoretical model of extractivism and slow-growth dynamics |
| title_sort | credit constraints and structure a theoretical model of extractivism and slow growth dynamics |
| topic | Credit constraints formal employment extractivism Colombia structuralist economics |
| url | http://www.scielo.br/scielo.php?script=sci_arttext&pid=S0101-31572021000300538&tlng=en |
| work_keys_str_mv | AT leopoldogomezramirez creditconstraintsandstructureatheoreticalmodelofextractivismandslowgrowthdynamics AT nestorgarza creditconstraintsandstructureatheoreticalmodelofextractivismandslowgrowthdynamics |