Abstract

LANDA DIAZ, Heri Oscar  and  SILVA BARRON, Thalía. Impact of financial development on Latin America's economic growth. Contad. Adm [online]. 2021, vol.66, n.4, e2977.  Epub Sep 02, 2024. ISSN 0186-1042.  https://doi.org/10.22201/fca.24488410e.2021.2977.

The aim of this paper is to examine the impact of financial development on economic growth. To that effect, the contribution of both the capital market and the banking system to the dynamics of the per capita gross domestic product (GDPpc) in Latin America (LA) is empirically tested for the period 19962017 with a panel Autoregressive Distributive Lag (ADL) model. Our main findings show that: i) the deepening of the financial system generates positive effects on the evolution of the product, though the coefficients are small; ii) international trade and the local technological effort maintain a direct relationship with economic performance; iii) the correlation between foreign direct investment (FDI) and product evolution is negative.

Keywords : Banking system; Capital market; Economic growth; ARDL panel model; Latin America.

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