Artikel
Growth, bank credit, and inflation in Mexico: Evidence from an ARDL-bounds testing approach
This paper explores the long-run effects of inflation on the dynamics of private sector bank credit and economic growth in Mexico over the period 1969 - 2011. With an ARDL-type model, the statistical results suggest that the availability of private sector bank credit in the economy exerts a positive impact on real GDP. In addition, inflation rates have contributed negatively to the increase in private credit, liquid liabilities, and financial development. A key outcome is that one percent increase in inflation is associated with a 0.07 % fall in long-run real rate of output through its effect on bank credit to the private sector. Another crucial finding is that policies of financial liberalization have helped stimulate economic growth. Reinforcing the literature on finance and growth, this study reaffirms that inflation rates are detrimental to long-run financial development and economic growth.
- Language
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Englisch
- Bibliographic citation
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Journal: Latin American Economic Review ; ISSN: 2196-436X ; Volume: 23 ; Year: 2014 ; Issue: 1 ; Pages: 1-22 ; Heidelberg: Springer
- Classification
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Wirtschaft
Price Level; Inflation; Deflation
Banks; Depository Institutions; Micro Finance Institutions; Mortgages
Financial Markets and the Macroeconomy
Single Equation Models; Single Variables: Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
- Subject
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Inflation
Private sector bank credit
Financial development
Growth
- Event
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Geistige Schöpfung
- (who)
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Tinoco-Zermeño, Miguel Ángel
Venegas-Martínez, Francisco
Torres-Preciado, Víctor Hugo
- Event
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Veröffentlichung
- (who)
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Springer
- (where)
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Heidelberg
- (when)
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2014
- DOI
-
doi:10.1007/s40503-014-0008-0
- Handle
- Last update
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10.03.2025, 11:42 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Artikel
Associated
- Tinoco-Zermeño, Miguel Ángel
- Venegas-Martínez, Francisco
- Torres-Preciado, Víctor Hugo
- Springer
Time of origin
- 2014
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