Revisiting economic growth in Colombia: a microeconomic perspective

"This paper revisits economic growth in Colombia using the growth diagnostics methodology proposed by Hausmann, Rodrik and Velasco (2005), with the purpose of identifying the most binding constraints for economic growth and the policies that, if implemented, can have the largest positive impact...

Descripción completa

Detalles Bibliográficos
Autores Principales: Meléndez, Marcela, Harker, Arturo
Publicado: 2015
Materias:
Acceso en línea:http://hdl.handle.net/11445/249
id ir-11445-249
recordtype dspace
spelling ir-11445-2492017-06-17T16:58:06Z Revisiting economic growth in Colombia: a microeconomic perspective Meléndez, Marcela Harker, Arturo Crecimiento Económico Desarrollo Económico Análisis Microeconómico "This paper revisits economic growth in Colombia using the growth diagnostics methodology proposed by Hausmann, Rodrik and Velasco (2005), with the purpose of identifying the most binding constraints for economic growth and the policies that, if implemented, can have the largest positive impact. To rank public policy priorities the HRV (2005) methodological approach is complemented with an econometric analysis of micro-data, aimed at exploring the impact that the various potential constraints to growth have had on firm-level investment decisions. 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 and not only by the reduction of 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, robust across model specifications, single out the provision of access to financing at fair prices as a policy priority for economic growth, relevant across country regions and independent of whether uncertainties from poor protection to property rights are resolved." "This paper revisits economic growth in Colombia using the growth diagnostics methodology proposed by Hausmann, Rodrik and Velasco (2005), with the purpose of identifying the most binding constraints for economic growth and the policies that, if implemented, can have the largest positive impact. To rank public policy priorities the HRV (2005) methodological approach is complemented with an econometric analysis of micro-data, aimed at exploring the impact that the various potential constraints to growth have had on firm-level investment decisions. 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 and not only by the reduction of 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, robust across model specifications, single out the provision of access to financing at fair prices as a policy priority for economic growth, relevant across country regions and independent of whether uncertainties from poor protection to property rights are resolved." O40 O41 2015-12-19T00:02:41Z 2016-01-21T02:25:58Z 2017-04-17T20:27:34Z 2017-06-17T16:58:06Z 2015-12-19T00:02:41Z 2016-01-21T02:25:58Z 2017-04-17T20:27:34Z 2017-06-17T16:58:06Z 2009-08 http://hdl.handle.net/11445/249 Documentos de Trabajo (Working Papers). No. 46. Agosto, 2009 application/pdf
institution Fedesarrollo
collection DSpace
topic Crecimiento Económico
Desarrollo Económico
Análisis Microeconómico
spellingShingle Crecimiento Económico
Desarrollo Económico
Análisis Microeconómico
Meléndez, Marcela
Harker, Arturo
Revisiting economic growth in Colombia: a microeconomic perspective
description "This paper revisits economic growth in Colombia using the growth diagnostics methodology proposed by Hausmann, Rodrik and Velasco (2005), with the purpose of identifying the most binding constraints for economic growth and the policies that, if implemented, can have the largest positive impact. To rank public policy priorities the HRV (2005) methodological approach is complemented with an econometric analysis of micro-data, aimed at exploring the impact that the various potential constraints to growth have had on firm-level investment decisions. 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 and not only by the reduction of 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, robust across model specifications, single out the provision of access to financing at fair prices as a policy priority for economic growth, relevant across country regions and independent of whether uncertainties from poor protection to property rights are resolved."
author Meléndez, Marcela
Harker, Arturo
author_facet Meléndez, Marcela
Harker, Arturo
author_sort Meléndez, Marcela
title Revisiting economic growth in Colombia: a microeconomic perspective
title_short Revisiting economic growth in Colombia: a microeconomic perspective
title_full Revisiting economic growth in Colombia: a microeconomic perspective
title_fullStr Revisiting economic growth in Colombia: a microeconomic perspective
title_full_unstemmed Revisiting economic growth in Colombia: a microeconomic perspective
title_sort revisiting economic growth in colombia: a microeconomic perspective
publishDate 2015
url http://hdl.handle.net/11445/249
_version_ 1626725050222641152
score 10,662984