Economic openness, external financing and sustained growth
In this paper we make explicit the relationship that exists between a set of structural reforms –as those undertaken in Argentina at the beginnings of the nineties- and the growth process that they generate. It is argued that such reforms, and particularly those related to the external sector, improve the efficiency in resource allocation and hence bring about an increase in the marginal productivity of the existing per capita capital stock. This improvement in efficiency puts the economy on a growth path having either temporary or permanent characteristics. In this model, as in other intertemporal paradigms of open economies with optimizing agents, the country resorts to the international credit market in order to finance higher consumption and investment levels. The paper also offers empirical evidence on a set of countries which implemented reforms deemed to be successful in terms of the evolution of the key economic variables, that is, the rate of per capita gross domestic product, the gross inve
Volume (Year): 22 (1995)
Issue (Month): 2 Year 1995 (December)
|Contact details of provider:|| Web page: http://www.econ.uchile.cl/|
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:udc:esteco:v:22:y:1995:i:2:p:277-326. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Verónica Kunze)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.