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

  • Luisa Blanco
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    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.

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    File URL: http://www.economia.puc.cl/docs/107764_laje_502179.pdf
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    Article provided by Instituto de Economía. Pontificia Universidad Católica de Chile. in its journal Latin American Journal of Economics-formerly Cuadernos de Economia.

    Volume (Year): 50 (2013)
    Issue (Month): 2 (November)
    Pages: 179-208

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    Handle: RePEc:ioe:cuadec:v:50:y:2013:i:2:p:179-208
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