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Credit and Capital Formation: Lessons of Mexican Migrant Entrepreneurs in the U.S. Financial Crisis

Eugenia Correa () and Alicia Girón

Journal of Economic Issues, 2013, vol. 47, issue 2, 555-560

Abstract: One of the most important elements of financial crises is the credit restriction that follows and the immediate consequences it has on investment and employment. In the post-Keynesian vision, an exit from economic crises frequently requires increased demand, specifically through public expenditure and employment. Furthermore, it requires the exploration of various policies and institutional reforms that could counteract the credit rationing emerging from the first moments of the financial crisis, particularly in regard to the financing of small business. This is one of the principal lessons this paper explores when studying a sample of Mexican immigrant entrepreneurs in three cities in the United States, and their conditions of survival amid the financial crisis.

Date: 2013
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DOI: 10.2753/JEI0021-3624470229

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Handle: RePEc:mes:jeciss:v:47:y:2013:i:2:p:555-560