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On the relationship between the real sector and the derivatives markets in major Latin American countries (2002-2016)

Author

Listed:
  • Aali-Bujari, Ali

    (Universidad Autónoma del Estado de Hidalgo, México)

  • Venegas-Martínez, Francisco

    (Escuela Superior de Economía, Instituto Politécnico Nacional)

  • Gómez-Rodríguez, Tomás

    (Universidad Autónoma del Estado de Hidalgo, México)

Abstract

This paper is aimed at assessing the relationship between the real economy and the derivatives markets in three of the largest economies in Latin America (Brazil, Mexico and Argentina) during the period 2002-2016. To do this, Granger causality test among the variables are performed and, subsequently, a panel data model is specified and estimated. The main empirical findings, in the studied economies, are: 1) there is significant bidirectional Granger’s causality between the real gross domestic product per capita and the derivatives markets and 2) the panel data model shows that the real economy is positively affected by the derivatives markets.

Suggested Citation

  • Aali-Bujari, Ali & Venegas-Martínez, Francisco & Gómez-Rodríguez, Tomás, 2023. "On the relationship between the real sector and the derivatives markets in major Latin American countries (2002-2016)," Panorama Económico, Escuela Superior de Economía, Instituto Politécnico Nacional, vol. 19(39), pages 27-40, Segundo s.
    • Handle: RePEc:ipn:panora:v:19:y:2023:i:39:p:27-40
    as

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    References listed on IDEAS

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    More about this item

    Keywords

    Real economy; derivatives market; Granger causality; panel data.;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid

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