Financial Crises and Growth: An Empirical Analysis from Emerging Mexican Economy A Long Run Perspective

Abstract

The purpose of this research is to assess the effect of financial and economic crises on economic growth in emerging Mexico economy. The aim of this work is to empirically examine the short-run and the long run relation between financial crises and economic growth condition in Mexico over the period from 1990 -2017. To do this, we opted for (ARDL) model. The results suggest that financial crises have a significant and permanent effect. These real effects seem to be more important and persistent in emerging countries. This research work is one of the very few studies that have investigated Influence the financial crises on long run economic growth in Mexico country situation using (ARDL) model. Moreover, it contributes to the existing literature in the area.