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The Effects of Financial Intermediation on Colombian Economic Growth

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  • Constanza Martínez Ventura

Abstract

Countries with highly developed financial systems tend have higher GDP growth rates than those than have not reached this desirable financial stage. Behind this premise there is a complex theoretical structure associated to the effects that financial intermediation have on the economic growth. The Literature on banking crises suggests that these effects may be negative in the short run whereas in the economic growth literature these are positive in the long run. In Colombia, the effects of financial intermediation on growth, evaluated by means of ARDL models, are positive in both the short and long run supporting the hypothesis of economic growth literature, but contradicting the hypothesis of banking crises literature.

Suggested Citation

  • Constanza Martínez Ventura, 2008. "The Effects of Financial Intermediation on Colombian Economic Growth," Revista ESPE - Ensayos Sobre Política Económica, Banco de la República, vol. 26(57), pages 250-280, December.
    • Handle: RePEc:col:000107:005810
    DOI: 10.32468/Espe.5705
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    Cited by:

    1. Iwasaki, Ichiro, 2022. "The finance-growth nexus in Latin America and the Caribbean: A meta-analytic perspective," World Development, Elsevier, vol. 149(C).
    2. Hernando Zuleta, 2021. "Competitividad y entorno institucional en Colombia," Documentos CEDE 19623, Universidad de los Andes, Facultad de Economía, CEDE.
    3. Kondoz, Mehmet & Kirikkaleli, Dervis & Athari, Seyed Alireza, 2021. "Time-frequency dependencies of financial and economic risks in South American countries," The Quarterly Review of Economics and Finance, Elsevier, vol. 79(C), pages 170-181.
    4. IWASAKI, Ichiro & ONO, Shigeki, 2023. "Economic Development and the Finance-Growth Nexus : A Meta-Analytic Approach," CEI Working Paper Series 2023-06, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.

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    More about this item

    Keywords

    Economic growth; financial development; banking crises.;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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