of Economic Growth and Bank Intermediation:
Empirical Analysis for Latin American Countries
aim of this article is to evaluate the contribution of the
banking sector to the economic growth of 16 Latin American
countries, from 1979 to 2006. The econometric procedure
is based on a panel data technique with fixed effects, classifying
the countries in two samples according to their income level.
Findings tend to corroborate the positive effects of banking
expansion on growth rates, according to the predictions
of endogenous growth models. However, they also indicate
that credit activity could have a negative impact on growth
while credits are directed essentially to consumers and
the public sector, at the expense of the productive sector.