ARTÍCULO
TITULO

Economic openness, external financing and sustained growth

José Luis Maia    
Javier Ortiz    

Resumen

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 investment to product ratio, and the product to capital incremental ratio (as an approximation to the marginal productivity of capital). Additionally, we trace the changes in the openness coefficient as an indicator of the scope of one of the reforms that attend successful structural changes. Based on the results obtained from the model and the international empirical evidence, it is recommended to deepen the overall policy of structural reforms ?of which external openness is a part- in order to generate a sustained growth process.

 Artículos similares

       
 
Uzair Bhatti and Noralfishah Sulaiman    
The purpose of this paper is to explore the impact of ESG sustainability practices (i.e., Environmental, Social, Governance/economic) on share performance. Moreover, the objective of the study is to investigate the sustainability practices with mediation... ver más

 
Sarminah Samad    
The global business scenario seems to be gloomy due to the economic uncertainty caused by the COVID-19 pandemic. The COVID-19 pandemic has impacted many economic sectors and a country?s national GNP, including the tourism industry. The question is whethe... ver más

 
Musumba Batondo and Josine Uwilingiye    
During the past two decades, financial markets across the globe have experienced sporadic waves of crashes. Such waves raise concerns about the vulnerability of global financial markets and the transmission mechanisms of shocks beyond borders. The curren... ver más

 
Sayef Bakari, Sofien Tiba     Pág. 29 - 37
This paper aimed at examining the tie between domestic investment, total consumption, and external debt in the case of Tunisia over the period 1970-2017. By applying the VECM, in the long-run, our findings recorded the fact that that external debt and do... ver más

 
Heriyanni Mashithoh,(Universitas TerbukaIndonesia)Andy Mulyana,(Universitas Terbuka)Rulyanti Susi Wardhani,(Universitas Bangka BelitungIndonesia)     Pág. 134 - 141
The purpose of this research is to identify internal and external factors and analyze the strengths, weaknesses, opportunities and threats in developing halal ecotourism based on the empowerment of coastal communities in Bangka Belitung. Furthermore, a s... ver más