The financial sector structure and performance and its impact on the Mexican economy: a perspective from the Financial Social Accounting Matrix

The study of the financial system, within the context of a Social Accounting Matrix, to identify its potential contribution to the economy and the linkages between the financial and productive sectors, is a topic barely explored, especially in emerging economies. This paper presents the construction of a Financial Social Accounting Matrix for the case of Mexico for the year 2013, using the Top-Down approach. It also presents an analytical tool through multipliers and impact simulations to understand the interconnection of income and expenditure transactions between sectors of the economy, into the intersectoral framework of financial sector flows and funds, identifying which sectors are creditors or debtors. We find that despite encouraging strategic sectors and allocating income to financial companies, the impact generated on other productive sectors is weak. Real estate services is the subsector that generates more monetary units for each exogenous monetary unit received. The methodology can be applied to assess the effects of impact simulations for planning policy, such as knowing the strategic sectors of the economy with greater linkages, and the possibility to assign and redirect financing to promote the consumption and investment capacity of both companies and households.