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

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  • Eugenia Correa
  • Alicia Girón

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.

Suggested Citation

  • Eugenia Correa & Alicia Girón, 2013. "Credit and Capital Formation: Lessons of Mexican Migrant Entrepreneurs in the U.S. Financial Crisis," Journal of Economic Issues, Taylor & Francis Journals, vol. 47(2), pages 555-560.
    • Handle: RePEc:mes:jeciss:v:47:y:2013:i:2:p:555-560
    DOI: 10.2753/JEI0021-3624470229
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    Cited by:

    1. Jordan A. Arellanes & Ruben P. Viramontez Anguiano & Brenda J. Lohman, 2017. "The Desire to Thrive: Families Overcoming Economic Hardships Through Educational Aspirations," Journal of Family and Economic Issues, Springer, vol. 38(3), pages 338-353, September.
    2. Sardo, Filipe & Serrasqueiro, Zélia & Armada, Manuel Rocha, 2022. "The importance of owner loans for rebalancing the capital structure of small knowledge-intensive service firms," Research in International Business and Finance, Elsevier, vol. 61(C).

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