DESARROLLO FINANCIERO Y CRECIMIENTO ECONÓMICO EN MÉXICO.

The objective of this study is to ascertain whether financial development influenced economic growth after 1990 (the analysis includes the period 1990 - 2004), a period during which a series of reforms was carried out tending to liberalize Mexico's financial sector. The McKinnon-Shaw hypothesis establishes that government restrictions on the financial sector restrict and distort the process of development in this sector and thereby inhibit the process of economic growth. The estimated incidence of financial development on economic growth is realized using a dynamic aggregate production function, similar to that employed by Asteriou and Price (2000). In contrast with the results obtained by Tinoco, Torres and Venegas (2008), we find that financial development had a positive impact on economic growth in the period under review. [ABSTRACT FROM AUTHOR]