Abstract

ANGUIANO-PITA, Javier Emmanuel  and  RUIZ-PORRAS, Antonio. Financial development and economic growth in North America. Finanz. polit. econ. [online]. 2020, vol.12, n.1, pp.165-199.  Epub Dec 05, 2020. ISSN 2248-6046.  https://doi.org/10.14718/revfinanzpolitecon.v12.n1.2020.3082.

This study examines the relationship between financial development and economic growth in the North American region. For this purpose, it uses the generalized dynamic factor model proposed by Forni et al. (2005) and annual data from the United States, Canada, and Mexico for the period 1980-2017. The findings suggest that: i) there are common factors among the financial markets and economies of the region despite their asymmetries in size; ii) economic growth rates are sensitive to common components; iii) the causal relationship between financial development and economic growth depends on the financial indicators considered. The findings can be useful to analyze the integration process in North America and to propose regional policies.

Keywords : Financial development; economic growth; generalized dynamic factor model; North America.

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