The Relationship Between Financial Development and Brazilian GDP per Capita

• 發表在: Sociedad y Economía
• Main Authors: João Guilherme Magalhães Timotio, Francisco Vidal Barbosa, Bruno Perez Ferreira
• 格式: Article
• 語言: 英语
• 出版: Programa Editorial de la Universidad del Valle 2025-03-01
• 主題: Financial development; GDP per capita; Average income; Autoregressive Distributed Lag (ARDL); Brazil
• 在線閱讀: https://revistaingenieria.univalle.edu.co/index.php/sociedad_y_economia/article/view/13332

This study aimed to investigate the relationship between financial development (measured in terms of the evolution of financial institutions) and GDP per capita in Brazil (a representative measure of the average income of the Brazilian population). The most suitable method for data operationalization was the Autoregressive Distributed Lag (ARDL) model. A long-term relationship between the model's variables was identified through the confirmation of cointegration. Specifically, in the long term, all variables demonstrated statistical significance. Access to financial institutions returned a negative value; however, the variables of financial depth and efficiency of financial institutions were positively related. In the short term, only the financial depth variable showed statistical significance, but with a sign opposite to that found in the long term. In summary, the findings underscore the importance of financial development in promoting the average income of the Brazilian population.