Determinants of Economic Growth & Intermediation: Empirical Analysis for Latin American Countries
Universidad de Quintana Roo
Ronquillo Chavez Cely
Universidad Autonoma de Ciudad Juarez
November 25, 2008
Panorama Socioeconomico (Chile), No. 37, pp. 108-119, July-December 2008
The aim of this article is to evaluate the contribution of the banking sector to the economic growth of 16 Latin American countries, from 1979 to 2006. The econometric procedure is based on a panel data technique with fixed effects, classifying the countries in two samples according to their income level. Findings tend to corroborate the positive effects of banking expansion on growth rates, according to the predictions of endogenous growth models. However, they also indicate that credit activity could have a negative impact on growth while credits are directed essentially to consumers and the public sector, at the expense of the productive sector.
Number of Pages in PDF File: 12
Keywords: Economic growth, Latin America, bank system, data panel
JEL Classification: C33, G21, O47, O54Accepted Paper Series
Date posted: May 25, 2009 ; Last revised: June 12, 2009
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