Publication
Why Institutions Matter: Banking and Economic Growth in Mexico
Mexico has grown at a remarkably anemic pace under free trade. One of the principal reasons has been the paucity of finance for firms and households, but understanding why there is so little private bank credit requires and understanding of the institutions that structure the incentives of bankers, investors, and the government. However, institutional reform is not independent of Mexico's current process of political reform. This paper develops and discusses the logic and evidence of this argument.
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Publication Date
November, 2004