Revisiting Economic Growth in Colombia: A Microeconomic Perspective

Marcela Meléndez Arjona and Arturo Harker Roa

No 3706, IDB Publications (Working Papers) from Inter-American Development Bank

Abstract: This paper revisits economic growth in Colombia using a growth diagnostics methodology to identify the most binding constraints for economic growth and the policies that, if implemented, can have the largest positive impact. The data shows economic reactivation in areas with falling violence. Results from analysis at the microeconomic level, however, give a particular spin to this conclusion by showing that investment decisions at the firm level are also explained by the restoration of some form of public order connected to the cessation of paramilitary violence. From a public policy perspective, perhaps the most relevant result is the confirmation that in Colombia, investment decisions are negatively affected by the cost of financing. Empirical results single out the provision of access to financing at fair prices as a policy priority for economic growth, independent of whether uncertainties from poor protection to property rights are resolved.

Keywords: growth; investment; public policy; Colombia (search for similar items in EconPapers)
JEL-codes: H54 J18 O12 O54 (search for similar items in EconPapers)
Date: 2008-09
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://publications.iadb.org/publications/english ... omic-Perspective.pdf (application/pdf)

Related works:
Working Paper: Revisiting economic growth in Colombia. A microeconomic perspective (2008)
Working Paper: Revisiting Economic Growth in Colombia: A Microeconomic Perspective (2008)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:idb:brikps:3706

Access Statistics for this paper

More papers in IDB Publications (Working Papers) from Inter-American Development Bank Contact information at EDIRC.
Bibliographic data for series maintained by Felipe Herrera Library ().