This paper explores the long-run effects of inflation on the dynamics of private sector bank credit and economic growth … in Mexico over the period 1969 - 2011. With an ARDL-type model, the statistical results suggest that the availability of … private sector bank credit in the economy exerts a positive impact on real GDP. In addition, inflation rates have contributed …

Based on a survey of Mexican firms, this paper provides evidence of the positive effect of bank credit on firms …' productivity. This effect is larger for those firms with access to bank credit and investment opportunities than for firms that … only have either investment perspectives or bank credit. The potential problem of endogeneity in the empirical estimates is …