Abstract

CHAVARIN RODRIGUEZ, Rubén  and  TLATOA CHAVEZ, Aurea. The importance of bank credit for the economic activity in Mexico: A manufacturing sector analysis. Ens. Rev. econ. [online]. 2023, vol.42, n.1, pp.83-120.  Epub May 19, 2023. ISSN 2448-8402.  https://doi.org/10.29105/ensayos42.1-4.

The general objective of this paper is to estimate, in Mexico’s case, the impact of commercial bank credit on economic activity in the whole manufacturing sector, and seven selected manufacturing industries. Unlike the literature that has studied the effects of bank credit in the Mexican economy, this research finds evidence (through ARDL-bounds models) of a positive and significant impact of bank credit on production for the whole sector and the following industries: i) food, ii) beverage and tobacco, iii) paper, iv) non-metallic mineral-based products, and v) transport equipment manufacturing; along with significant effects from fixed investment in machinery and equipment, and the real interest rate. In addition, we did not find evidence that loan concentration affects manufacturing production. Due to these results, this study postulates that bank credit matters as a stimulus for industrial activity, and it would be worth designing policies that strengthen and deepen such impacts.

Keywords : bank credit; economic growth; manufacturing sector; Latin America; C22; E44; E51; L60; O54.

        · abstract in Spanish     · text in English     · English ( pdf )