The Relationship Between Financial Development and Brazilian GDP per Capita

This study aimed to investigate the relationship between financial development (measured in terms of the evolution of financial institutions) and GDP per capita in Brazil (a representative measure of the average income of the Brazilian population). The most suitable method for data operationalizati...

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Main Authors: João Guilherme Magalhães Timotio, Francisco Vidal Barbosa, Bruno Perez Ferreira
Format: Article
Language:English
Published: Programa Editorial de la Universidad del Valle 2025-03-01
Series:Sociedad y Economía
Subjects:
Online Access:https://revistaingenieria.univalle.edu.co/index.php/sociedad_y_economia/article/view/13332
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author João Guilherme Magalhães Timotio
Francisco Vidal Barbosa
Bruno Perez Ferreira
author_facet João Guilherme Magalhães Timotio
Francisco Vidal Barbosa
Bruno Perez Ferreira
author_sort João Guilherme Magalhães Timotio
collection DOAJ
description This study aimed to investigate the relationship between financial development (measured in terms of the evolution of financial institutions) and GDP per capita in Brazil (a representative measure of the average income of the Brazilian population). The most suitable method for data operationalization was the Autoregressive Distributed Lag (ARDL) model. A long-term relationship between the model's variables was identified through the confirmation of cointegration. Specifically, in the long term, all variables demonstrated statistical significance. Access to financial institutions returned a negative value; however, the variables of financial depth and efficiency of financial institutions were positively related. In the short term, only the financial depth variable showed statistical significance, but with a sign opposite to that found in the long term. In summary, the findings underscore the importance of financial development in promoting the average income of the Brazilian population.
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series Sociedad y Economía
spelling doaj-art-eaf3eb768c14445ea5219cf6913748ca2025-08-20T02:55:49ZengPrograma Editorial de la Universidad del ValleSociedad y Economía2389-90502025-03-0115410.25100/sye.v0i54.13332The Relationship Between Financial Development and Brazilian GDP per CapitaJoão Guilherme Magalhães TimotioFrancisco Vidal Barbosa0Bruno Perez Ferreira1Universidade Federal de Minas GeraisUniversidade Federal de Minas Gerais This study aimed to investigate the relationship between financial development (measured in terms of the evolution of financial institutions) and GDP per capita in Brazil (a representative measure of the average income of the Brazilian population). The most suitable method for data operationalization was the Autoregressive Distributed Lag (ARDL) model. A long-term relationship between the model's variables was identified through the confirmation of cointegration. Specifically, in the long term, all variables demonstrated statistical significance. Access to financial institutions returned a negative value; however, the variables of financial depth and efficiency of financial institutions were positively related. In the short term, only the financial depth variable showed statistical significance, but with a sign opposite to that found in the long term. In summary, the findings underscore the importance of financial development in promoting the average income of the Brazilian population. https://revistaingenieria.univalle.edu.co/index.php/sociedad_y_economia/article/view/13332Financial developmentGDP per capitaAverage incomeAutoregressive Distributed Lag (ARDL)Brazil
spellingShingle João Guilherme Magalhães Timotio
Francisco Vidal Barbosa
Bruno Perez Ferreira
The Relationship Between Financial Development and Brazilian GDP per Capita
Sociedad y Economía
Financial development
GDP per capita
Average income
Autoregressive Distributed Lag (ARDL)
Brazil
title The Relationship Between Financial Development and Brazilian GDP per Capita
title_full The Relationship Between Financial Development and Brazilian GDP per Capita
title_fullStr The Relationship Between Financial Development and Brazilian GDP per Capita
title_full_unstemmed The Relationship Between Financial Development and Brazilian GDP per Capita
title_short The Relationship Between Financial Development and Brazilian GDP per Capita
title_sort relationship between financial development and brazilian gdp per capita
topic Financial development
GDP per capita
Average income
Autoregressive Distributed Lag (ARDL)
Brazil
url https://revistaingenieria.univalle.edu.co/index.php/sociedad_y_economia/article/view/13332
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