Impact of Financial Innovation on the Sustainable Development of Mexico

DOI

10.2991/978-94-6239-779-8_5How to use a DOI?

Keywords

Financial innovation; sustainable development; gross fixed capital formation; ARDL model; Mexican financial system

Abstract

The financial system plays a fundamental role in economic growth by facilitating the mobilization and efficient allocation of resources toward productive activities. In this context, the objective of this study was to analyze the impact of financial innovation, measured through monetary deepening and private credit, on productive capital accumulation in Mexico during the period 1990–2021. The research adopted a quantitative approach with an explanatory-correlational scope and a non-experimental longitudinal design. Annual time-series data obtained from the World Bank and the Bank of Mexico were analyzed using the Augmented Dickey-Fuller (ADF) unit root test and an Autoregressive Distributed Lag (ARDL) model with a maximum of three lags. The results indicate that the variables are integrated of order one, I(1), and that the original sustainable development variable had to be replaced by Gross Fixed Capital Formation (GFCF) due to econometric considerations. The ARDL model revealed temporal persistence in GFCF and a positive effect of per capita income on productive investment. However, financial innovation did not exhibit statistically significant effects, while private credit showed negative lagged effects. Furthermore, the Bounds Test found no evidence of a long-run cointegration relationship. The findings suggest that financial innovation has not generated structural effects on productive capital accumulation in Mexico, pointing to inefficiencies in credit allocation that limit its contribution to sustainable development.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (http://creativecommons.org/licenses/by-nc-nd/4.0/), which permits any noncommercial use, sharing, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if you modified the licensed material. You do not have permission under this license to share adapted material derived from this chapter or parts of it.

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TY  - CONF
AU  - Alfonso Martín Rodríguez
AU  - Mario Alejandro Gómez Gutiérrez
PY  - 2026
DA  - 2026/10/06
TI  - Impact of Financial Innovation on the Sustainable Development of Mexico
BT  - Proceedings of the International Congress on Competitiveness and Development of MSMEs 2026 (ICCD-MSMEs 2026)
PB  - Atlantis Press
SP  - 54
EP  - 68
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-779-8_5
DO  - 10.2991/978-94-6239-779-8_5
ID  - Rodríguez2026
ER  -