Desarrollo financiero & crecimiento económico — Un estudio de caso para Chile

Abstract

Nowadays Chile is considered one of the most development financial systems in the region, however, to our knowledge there has been little empirical work regarding the effect of Chilean financial development on growth. It’s true that a remarkable amount of works have focus on the link between finances and growth, but it’s also true that this works are at best an indicative of the relationship for Chile, mainly because they focus on cross country regressions or on time series analysis for develop countries. In the present work we estimate the relationship between financial development and output over two scopes, one grounded on macroeconomic time series analysis of cointegrated variables and the other grounded on a dynamic panel industrial analysis, following Rajan y Zingales (1998). We conclude that there is a positive and substantial effect of financial development on output, but this effect is explain largely by the banking sector vis a vis the stock market, also we find evidence that the causality between both is at least bidirectional discarding that finance just follows growth. Our results are robust over different methodologies and specifications.