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Economic growth and financial development: Evidence from three countries in North America

Author

Listed:
  • Teresa de J. Vargas Vega

    (Doctora en Economía y Empresa por la Universidad Europea de Madrid. Profesora Investigadora del Área Académica de Contaduría. Instituto de Ciencias Económico Administrativas de la Universidad Autónoma del Estado de Hidalgo. México. Teléfono: +52-771-7172000 ext. 2903.)

  • Zeus S. Hernández Veleros

    (Doctor en Economía por la Universidad de Barcelona. Profesor Investigador del Área Académica de Economía. Instituto de Ciencias Económico Administrativas de la Universidad Autónoma del Estado de Hidalgo. México. Teléfono: +52-771-7172000 ext. 2903.)

  • Eleazar Villegas González

    (Doctor en Desarrollo Económico y Sectorial Estratégico por la Universidad Popular Autónoma del Estado de Puebla. Profesor Investigador del Área Académica de Contaduría. Instituto de Ciencias Económico Administrativas de la Universidad Autónoma del Estado de Hidalgo. México. Teléfono: +52-771-7172000 ext. 2903.)

Abstract

The main aim of this paper is to determine the existence of a chance of development between the fi nancial sector and economic growth for countries in North America. This investigation is structured in two sections: fi rst a revision of theoretical aspects and techniques of causality, and the second, the causalities possible direction is analyzed, supporting it is the proof from the Granger, Toda / Yamamoto tests. It is concluded that the existence of a positive relationship between economic growth and the development of the economic sector for Canada and Mexico does exist. Nonetheless, in the case of the North American market, we can confi rm a null causality, according to what Granger said on fi nancial dynamics.

Suggested Citation

  • Teresa de J. Vargas Vega & Zeus S. Hernández Veleros & Eleazar Villegas González, 2017. "Economic growth and financial development: Evidence from three countries in North America," Economía, Instituto de Investigaciones Económicas y Sociales (IIES). Facultad de Ciencias Económicas y Sociales. Universidad de Los Andes. Mérida, Venezuela, vol. 42(43), pages 11-50, January-j.
    • Handle: RePEc:ula:econom:v:42:y:2017:i:43:p:11-50
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    References listed on IDEAS

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    JEL classification:

    • C53 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Forecasting and Prediction Models; Simulation Methods

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