Finance, Growth, and Institutions in Latin America: What are the Links?
Latin American Journal of Economics-formerly Cuadernos de Economía, 2013, vol. 50, issue 2, 179-208
Using a panel of 16 countries during the 1961-2010 period, we find that financial development has a positive significant ef fect on economic growth in the long run for high-income countries but a negative significant ef fect for low-income countries. When studying the determinants of financial development, we find that higher financial openness and lower country risk are associated with greater financial development. The financial risk index has a positive significant ef fect on financial development, while the economic risk index has a negative significant ef fect. In addition, lower foreign debt and better socioeconomic conditions increase financial development.
Keywords: Financial development; economic growth; institutions; political stability; Latin America (search for similar items in EconPapers)
JEL-codes: G21 O16 O43 O54 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:ioe:cuadec:v:50:y:2013:i:2:p:179-208
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Latin American Journal of Economics-formerly Cuadernos de Economía is currently edited by Raimundo Soto
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