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Impact of the stock market capitalization and thebanking spread in growth and development in LatinAmerican: A panel data estimation with System GMM

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  • Ali Aali-Bujari

    (Universidad Autónoma del Estado de Hidalgo, Mexico)

  • Francisco Venegas-Martínez

    (Instituto Politécnico Nacional, Mexico)

  • Gilberto Pérez-Lechuga

    (Universidad Autónoma del Estado de Hidalgo, Mexico)

Abstract

This research is aimed at assessing the impact of the stock market capitalization and the banking spread in per capita economic growth (as a proxy of economic development) in the major Latin American economies during period 1994–2012. To do this, a panel data model is estimated with both system and difference Generalized Method of Moments. The main empirical findings are that economic growth in the countries under study is positively impacted by the stock market capitalization and negatively by the banking spread. Typical problems of multicollinearity and autocorrelation appearing in panel data analysis are corrected under the proposed methodology.Classification-JEL: O10; O31; O47

Suggested Citation

  • Ali Aali-Bujari & Francisco Venegas-Martínez & Gilberto Pérez-Lechuga, 2017. "Impact of the stock market capitalization and thebanking spread in growth and development in LatinAmerican: A panel data estimation with System GMM," Contaduría y Administración, Accounting and Management, vol. 62(5), pages 3-4, Diciembre.
    • Handle: RePEc:nax:conyad:v:62:y:2017:i:5:p:3-4
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    2. Hana Bawazir & Mukesh Kumar & Saban Celik & Khadija Abdulredha Abdulla & Bora Aktan, 2020. "The interdependence between stock market development and economic growth: a multi-country examination," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 38(2), pages 619-652.
    3. Mbondo, Georges Dieudonné & Bouwawe, Duclo, 2023. "Transformation structurelle des pays à revenu faible et intermédiaire en Afrique Sub-saharienne : quels rôles des flux des capitaux internationaux ? [Structural transformation of low- and middle-in," MPRA Paper 117911, University Library of Munich, Germany, revised 11 Jul 2023.
    4. Samet Gunay & Gokberk Can, 2022. "The source of financial contagion and spillovers: An evaluation of the covid-19 pandemic and the global financial crisis," PLOS ONE, Public Library of Science, vol. 17(1), pages 1-20, January.
    5. Mojtaba Nabipour & Pooyan Nayyeri & Hamed Jabani & Amir Mosavi, 2020. "Deep learning for Stock Market Prediction," Papers 2004.01497, arXiv.org.

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    More about this item

    Keywords

    Economic growth; Economic development; Financial sector; Panel data;
    All these keywords.

    JEL classification:

    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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