Relationship between financial development and economic growth in Colombia for the period 1994-2018.

Abstract

This paper examines the long-term dynamics between financial development and economic growth in Colombia, for the period 1994-2018. It follows the growth model of Solow-Swan, increased with the financial system, as proposed by Durusu-Ciftci, Ispir and Yetkiner (2017), estimated through a vector error correction (VEC). The results of the analysis are consistent with the theory that exposes the existence of a positive relationship between the development of the financial system and economic growth in the long term