Revista Finanzas y Política Económica <p>The <em>Revista Finanzas y Política Económica</em> - Journal of Economics (ISSN:&nbsp;2248-6046,&nbsp;E-ISSN: 2011-7663), is the official publication of the Faculty of Economics of Catholic University of Colombia. Since 2007 until today, the journal has created a research and scientific space&nbsp;where the issues related to economic policies, finance and other topics linked to economics in the Colombian, Latin American, and global context, are analyzed and discussed by top-level researchers.</p> Universidad Católica de Colombia en-US Revista Finanzas y Política Económica 2248-6046 <p>This journal is licensed by a Creative Commons Attribution License (CC BY-NC-SA 4.0) <a href="" target="_blank">Attribution-Non Commercial 4.0 International</a>. For the CC licenses, the principle isthe creative freedom. This system complements the copyright without opposing it, conscious of its importance in our culture. The content of the articles is the responsibility of each author, and does not compromise in any way, to the magazine or the university. It allows the transmission and reproduction of titles, abstracts and full content, with academic, scientific, cultural ends, provided acknowledgment of the respective source. This work cannot be used for commercial purposes. </p><p><a href="" rel="license"><img src="" alt="Licencia de Creative Commons" /></a></p> By way of invitation: A bet on resignifying development in Latin America Today, given the prevalence of problems such as poverty, environmental deterioration, the violation of rights, violence, among others, Latin America highlights the urgency of restoring debates about development and proposing alternatives to this that would allow a better life. During the 20th century and the first decades of the 21st century, the region has faced a series of economic problems resulting from colonialism and imperialism, in addition to political and social instability in every country of the continent. All this has imprinted the seal of underdeveloped on the region; as a response to this situation, a series of ad hoc theoretical proposals have arisen to suggest alternatives and solutions to particular problems Verel Elvira Monroy Flores Copyright (c) 2019 Revista Finanzas y Política Económica 2019-07-24 2019-07-24 11 1 11 13 10.14718/revfinanzpolitecon.2019.11.1.1 Is regional integration a vehicle for convergence? The case of Mercosur, 1990-2014 <p>This article seeks to answer two questions: Has the process of regional integration in Mercosur since its launch with the Treaty of Asunción (1991) contributed to reducing disparities in per capita income among countries in the region? Has there been convergence via intra-zone trade? To do this, it was necessary to review the theoretical framework of integration and to seek <br />Artículo de investigación © 2019 Universidad Católica de Colombia. Facultad de Ciencias Económicas y Administrativas. Todos los derechos reservados<br />1Universitat Politècnica de València, Valencia, España 2Universidad de La Salle, Bogotá, Colombia<br />24 24<br />Finanz. polit. econ., ISSN 2248-6046, Vol. 11, N.° 1, enero-junio, 2019, pp. 23-40<br />explanations that would justify the Mercosur integration process under the customs union scheme and its link with convergence. Integration is understood here as an economic process influenced by the productive structures of countries, whose pattern of trade responds to the allocation of resources of the sectoral structure of production. Using the fixed effects model, it was observed that regressions do not show the existence of ß-convergence in the GDP per capita of the set of countries. Additionally, a model was estimated based on the global open data index and intra-regional openness index. The results do not reveal conditional ß-convergence for the set of countries. The paper concludes that Mercosur has not favored the growth of countries in terms of GDP per capita.</p> Paula Andrea Nieto Alemán Jaime Alberto Rendón Acevedo Copyright (c) 2019 Revista Finanzas y Política Económica 2019-02-01 2019-02-01 11 1 23 40 10.14718/revfinanzpolitecon.2019.11.1.2 Economic convergence of the Western Balkans towards the EU-15 <p>This paper aims to analyze the beta convergence of Western Balkan countries towards the EU-15 Member States in the period 2004-2016, and two sub-periods: 2004-2008 and 2009-2013. Beta convergence is based on the neoclassical growth theory and tests the hypothesis that poor countries tend to grow faster than rich countries, in per capita terms. The empirical findings support the economic convergence hypothesis, with convergence rates ranging from 1.1% to 2.3%. The results show that the recent financial crisis negatively affected the absolute and conditional convergence process, when economic variables are included. The main limitation of the research is the availability of data.</p> Sándor Gyula Nagy Dzenita Siljak Copyright (c) 2019 Revista Finanzas y Política Económica 2019-02-01 2019-02-01 11 1 41 53 10.14718/revfinanzpolitecon.2019.11.1.3 Foreign direct investment and economic growth in Jordan: An empirical research using the bounds test for cointegration This paper investigates both long-run and short-run elasticities between gross domestic product and foreign direct investment (FDI) in Jordan. Annual data have been used in order to explore the relationship between foreign direct investments (FDI) with economic growth for the period 1992-2013. Data were collected for both variables (FDI and GDP) from the World Bank and World Development Indicators, and the Autoregressive Distributed Lag Model (ARDL) approach was used. The results show long-run and short-run elasticities in foreign direct investment (FDI) and GDP. The results indicate that Jordanian policy makers focus their efforts to attract more FDI to Jordanian economy. This is because more FDI is expected to lead to a decrease in economic obstacles in Jordan (e.g., increased level of investment, decreased unemployment rate). Mohammad Salem Oudat Ayman Abdalmajeed Alsmadi Najed Massad Alrawashdeh Copyright (c) 2019 Revista Finanzas y Política Económica 2019-02-01 2019-02-01 11 1 55 63 10.14718/revfinanzpolitecon.2019.11.1.4 Colombia ? Japan FTA: A trade opportunity? An ex-ante analysis This document researches the quantitative effects of a tariff reduction between Colombia and Japan, because of a possible commercial agreement. Using some indicators of commercial dynamism and a partial equilibrium model based on the SMART methodology of the World Bank, the static effects of trade are estimated. As a result, the main characteristics of the groups of products that are traded bilaterally are evidenced, pointing out the potential risks and benefits, noting that the commercial effects are low for both countries and that there are minimal potential risks. For some particular sectors, export opportunities are identified. Stella Venegas Calle Nicolás de la Pena Copyright (c) 2019 Revista Finanzas y Política Económica 2019-02-01 2019-02-01 11 1 65 84 10.14718/revfinanzpolitecon.2019.11.1.5 Economic labour reform vs. economic situation: Impact on the finances of the Spanish Wage Guarantee Fun The Wage Guarantee Fund (FOGASA) is a public institution in Spain that pays, up until the limit, labor credits to workers affected by a dismissal when the employer is bankrupt, which has been influenced by the policy of spending cuts as any other public institution. The objective of this paper is to examine whether the 2012 Labour Market Reform, adopted under the influence of the Budgetary Stability Law, has been successful and has had an impact on FOGASA?s expenses. To this end, the study analyzed budget settlement and looked for variables that can explain spending evolution in a better way, using a linear regression model. It is GDP and other economic variables that explain this evolution, not cuts in the benefit limits. Remedios Ramón-Dangla Copyright (c) 2019 Revista Finanzas y Política Económica 2019-02-01 2019-02-01 11 1 85 100 10.14718/revfinanzpolitecon.2019.11.1.6 Youth unemployment in Colombia: Does education matter? Young people face unique obstacles in their search for a productive work life, and more frequently than adults. Employment indicators for young people?such as unemployment rate, precarious employment, income, among others?are significantly worse than those of adults. One of the main factors of youth unemployment is the mismatch of competencies: over-education and over-skilling coexist with under-education and lack of skills. This article analyzes the factors that affect youth unemployment rate in Colombia. Particular attention is paid to the role of education. The main findings confirm the importance of education in achieving better quality jobs in terms of labor formality, but not in the probability of being employed. Cristian Darío Castillo Robayo Javier García Estévez Copyright (c) 2019 Revista Finanzas y Política Económica 2019-02-01 2019-02-01 11 1 101 127 10.14718/revfinanzpolitecon.2019.11.1.7 Financial crises: It is not different this time This article discusses the main theoretical characteristics of several types of financial crises. With this objective in mind, it presents a detailed explanation of the functioning of the modern financial system, recent history of macroeconomics, and the conceptual and empirical properties of financial crises. It concludes that a central bank is limited to act against credit bubbles and that current macroeconomic models cannot explain correctly interactions in financial markets. In addition, it deduces the possibility that emerging economies worldwide will experience financial crisis in the coming months. Miller Rivera Lozano Nicolás Rivera Garzón Copyright (c) 2019 Revista Finanzas y Política Económica 2019-02-01 2019-02-01 11 1 129 147 10.14718/revfinanzpolitecon.2019.11.1.8 Impact of the monetary policy decisions of the FED on Colombian economic indicators during the period 2007-2015 <p>This paper analyzes the impact of the Federal Reserve?s monetary policy in the United States during the period 2007-2015 on three Colombian economic indicators: the representative market rate (TRM), the COLCAP Index, and fixed income securities (TES) with a coupon rate of 11 % per annum. It also looks at EDF announcements one year before the crisis, during the implementation of the program between 2008 and 2014, and one year after the end of the program, when it is decided that monetary policy will be tightened in December 2015. The article starts with an overview of the outstanding causes of the crisis, reviews the main research carried out on the subject?highlighting the impact on financial assets in different economies?, and it finally explains the event methodology applied with an EGARCH model in the analysis results. The study concludes that announcements on the EDF?s monetary policy in the established period of analysis significantly impacted the COLCAP and TRM indicators in windows of 3, 5, and 7 days, in 87 % of the cases. The 11 % TES coupon variable did not allow to be analyzed as explained in the final conclusions</p> Alberto Parra Barrios Copyright (c) 2019 Revista Finanzas y Política Económica 2019-02-01 2019-02-01 11 1 149 182 10.14718/revfinanzpolitecon.2019.11.1.9 Conceptual foundations for the determination of environmental fines in Colombia The sanctioning process for environmental infringement in Colombia includes the exercise of determining fines (Law 1333 of 2009), with a methodology established in the Resolution 2086 of 2010, and proposed by the Ministry of Environment, Housing, and Territorial Development (MAVDT for its initials in Spanish) in 2010. Nevertheless, despite the fact that there exists an approved and published determination methodology, its implementation by different public institutions that exercise environmental authority in the country is not clear, mainly due to the fact that such methodology contains details in the writing that do not facilitate the understanding of the procedure in important sections. This article aims to establish conceptual foundations for the determination of fines according to the methodology approved in Colombia, as well as to present?in an explicit and clear manner?each formula that is necessary in the determination process, so that determination criteria used by specialized personnel match the standards. The basis of the discussion is to consider fine as the sum of illicit benefits and environmental damage, whether the latter is real or potential. The paper concludes that the formula for the determination of fines for environmental infringement in Colombia is adequate for the sanctioning processes that take place in the country. Johan Manuel Redondo Danny Ibarra-Vega Copyright (c) 2019 Revista Finanzas y Política Económica 2019-02-01 2019-02-01 11 1 183 194 10.14718/revfinanzpolitecon.2019.11.1.10