ABSTRACT
This chapter reviews the relationship between the natural resource curse and financial development. It describes Mexican economy and its financial system are analysed. The chapter presents econometric analysis of the relation between natural resource wealth and investments in natural resources, physical and human capital, as well as the relationship between the dependence of natural resources and financial development for Latin American countries. It also presents econometric analysis, using fuel and ore exports in per cent of total merchandise exports as independent variables, to highlight resource specialisation and dependence, and includes additional financial development variables. Most importantly, the debate over financial development includes clarifying which configuration of the financial structure is best for different countries. The DC are most advanced in terms of financial development, the Latin American region is less advanced and Mexico lies somewhere in the middle.
