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A Smithian analysis of economic growth in Colombia: methodological advances

Author

Listed:
  • Carlos Ortiz

    (Universidad del Valle)

  • Diana Jiménez

    (Universidad del Valle)

Abstract

Economic theory posits that economic growth is enhanced by factor accumulation, public good provision, and respect for property rights. Without disregarding this consensus, this paper rescues the Smithian hypothesis that diversification of production and the expansion of the population purchasing power are also integrated and fundamental engines of economic growth. In fact, the available data do not allow rejecting the hypotheses that the combined accumulation of physical and human capital, the diversification of technology-intensive productive activities, and the expansion of the urban population purchasing power are the main sources of economic growth in Colombia. The analysis also allows identifying three important plummets of domestic economic development: the insufficient development of transport infrastructure, high levels of violence, and the inadequacy, inefficiency and/or scarcity of governmental and financial services.

Suggested Citation

  • Carlos Ortiz & Diana Jiménez, 2017. "A Smithian analysis of economic growth in Colombia: methodological advances," Lecturas de Economía, Universidad de Antioquia, Departamento de Economía, issue 87, pages 35-66, Julio - D.
    • Handle: RePEc:lde:journl:y:2017:i:87:p:35-66
    DOI: 10.17533/udea.le.n87a02
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    economic growth; productive diversification; purchasing power; property rights; public goods.;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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