Relationship between economic growth and the stock market in Mexico: A cointegration and causality analysis, 1981–2024
DOI:
https://doi.org/10.68061/hwfach11Keywords:
economic growth, financial growth, cointegration, equilibriumAbstract
This article investigates the dynamic relationship between economic growth and the Mexican stock market through the application of an error correction model (ECM) and Granger causality tests. Using quarterly data from the 1981–2024 period, it examines the existence of a long-run equilibrium relationship between Gross Domestic Product (GDP) and the Mexican Stock Exchange Index (IPC), as well as the short-run adjustment mechanisms. The study also analyzes the direction of causality between the two variables, aiming to provide empirical evidence on the interaction between economic and financial performance in Mexico.
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