Open AccessEconomic activity and financial variables in Mexico
Author(s) -
Francisco López Herrera,
Alejandra Cabello,
Édgar Ortiz
Publication year - 2019
Publication title -
panorama económico
Language(s) - English
Resource type - Journals
ISSN - 1870-2171
DOI - 10.29201/peipn.v14i28.40
Subject(s) - distributed lag , index (typography) , economics , exchange rate , stock market , stock market index , interest rate , stock exchange , autoregressive model , econometrics , financial economics , monetary economics , finance , geography , context (archaeology) , archaeology , world wide web , computer science
This paper analyzes the relationship between economic activity in Mexico and a set of relevant Mexican financial variables. Monthly data for the period January 1993 to August 2018 includes time series of global economic activity index, consumer price index, peso-USD exchange rate, international reserves, interest rate of short-term Mexican T-bills, Mexico´s stock market index and its level of activity as measured by the volume of operations on variable income assets. The analysis is based on an Autoregressive Distributed Lag (ADRL) model. The empirical evidence reveals that all explanatory variables, except the stock market index, show a long-run relationship with the level of Mexican economy activity.