Credit constraints and structure: a theoretical model of extractivism and slow-growth dynamics
Leopoldo Ramirez and
Nestor Garza ()
Brazilian Journal of Political Economy, 2021, vol. 41, issue 3, 538-554
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. JEL Classification: O11; O41; E24; E26.
Keywords: Credit constraints; formal employment; extractivism; Colombia; structuralist economics (search for similar items in EconPapers)
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
https://centrodeeconomiapolitica.org.br/repojs/ind ... ticle/view/2212/2227 (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ekm:repojs:v:41:y:2021:i:3:p:538-554:id:2212
Access Statistics for this article
More articles in Brazilian Journal of Political Economy from Center of Political Economy
Bibliographic data for series maintained by Brazilian Journal of Political Economy (Brazil) ().