Finance, Growth, and Institutions in Latin America: What are the Links?

• Luisa Blanco ^[1]
  1. [1] Pepperdine University

     Pepperdine University

     Estados Unidos

     
• Localización: Latin American Journal of Economics: formerly Cuadernos de Economía, ISSN-e 0719-0433, Vol. 50, Nº. 2, 2013, págs. 179-208
• Idioma: inglés
• Enlaces
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• Resumen

  • 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.