Finanzas y crecimiento en México: ¿Quién aporta más, la banca o la bolsa?

Translated title of the contribution: Finance and Growth in Mexico: Who Contributes the Most: The Banks or the Stock Market?

Lizethe Méndez-Heras, Francisco Venegas-Martínez, Ricardo Solís-Rosales

Research output: Contribution to journalArticlepeer-review

Abstract

This paper studies the relationship between the financial structure and the economic growth of Mexico during 1980-2014. The literature identifies two types of financial structure: bank-based and stock-market-based. In the first, commercial banking positively impacts economic activity, while in the second, the stock market influences the performance of the economy. A third view considers that all financial activity (banks, stock market and other financial institutions) influences growth. These hypotheses are assessed by using a VEC model. The empirical findings suggest that, considering the liquidity of the financial system, stock market activity predominates throughout the study period; but when we take the size of the financial system, banking activity prevails. We also show that increasing financial system liquidity had a positive effect on economic growth, although increasing the size of the financial system decreased the GDP per capita over the period 1980-2014. Moreover, the short-term dynamic analysis reveals that if the financial structure became more marketed-oriented, the effect on economic growth would be positive.

Translated title of the contributionFinance and Growth in Mexico: Who Contributes the Most: The Banks or the Stock Market?
Original languageSpanish
Pages (from-to)238-278
Number of pages41
JournalLecturas de Economia
Issue number96
DOIs
StatePublished - Jan 2022

Fingerprint

Dive into the research topics of 'Finance and Growth in Mexico: Who Contributes the Most: The Banks or the Stock Market?'. Together they form a unique fingerprint.

Cite this