Mexico’s Finance-Growth nexus with trade openness, FDI and portfolio investment: evidence From cointegration analysis
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1 décembre 2019
- handle: 10670/1.gsbnua
Ce document est lié à :
10.17230/ecos.2019.49.2
info:eu-repo/semantics/openAccess
Mots-clés
Finance-growth nexus Globalization VECM Cointegration MexicoSujets proches
Economic growth Growth, Economic Development, EconomicCiter ce document
Takashi Fukuda, « Mexico’s Finance-Growth nexus with trade openness, FDI and portfolio investment: evidence From cointegration analysis », Ecos de Economía, ID : 10670/1.gsbnua
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Résumé
This study investigates Mexico’s finance-growth nexus by controlling the “globalization” variables of trade openness, foreign direct investment (FDI) and portfolio investment together with the structural break dummy. Financial development is proxied by two indicators of size and efficiency. Implementing the cointegration and Granger causality tests in the framework of the vector error correction model (VECM), we found that: financial size is negative for economic growth with no feedback; financial efficiency and economic growth are in a negative bilateral relationship; trade openness and portfolio investment are positive for economic growth; and FDI is negative for economic growth and financial efficiency. JEL Classification: E44; F40; O54