Abstract

LEVY ORLIK, Noemi. Institutional Changes in the financial sector and its effect on investment funding. Mexico: 1960/1994. Inv. Econ [online]. 1999, vol.59, n.229, pp.75-119. ISSN 0185-1667.

The aim of this work is to analyses the effects of the institutional changes in the Mexican financial system on economic growth, considering a period when regulatory and deregulatory policies were dominant.

We shall sustain that finance instead of saving is the central pre­ condition of investment; which ought to be accompanied by a funding process, in order to match savings generated from investment with long term debts.

This work is divided in three parts. The first one presents a theoretic discussion of the finance determinants. In the second part is studied the modifications of the international financial structure during the period of study and its effect on funding mechanisms. The third part contains the empirical analyses of the Mexican economy and it is found that during the period of regulatory policies, investment demand and finance was more stable than during the years of deregulation.