Abstract

This research aims to illustrate how, under the scenario of global financialization,
Colombia’s productive model changed and now is led by finance which extracted value,
creating instability, and provoking a crowding out effect on real sector embodied here by
the manufacture share of GDP. The above became evident in the 1990s thanks to freemarket
reforms implemented. The research uses heterodox theory to empirically verify the
hypotheses by creating variables representing the proposed phenomena and exposing them
through descriptive analysis and a VARX model.

JEL Classification: B26; D46; E12; F65; O14.