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Financial development, openess and institutions: Evidence from panel data

By Badi H. Baltagi, Panicos O. Demetriades and Law Siong Hook


Utilising four annual panel datasets and dynamic panel data estimation procedures we find that trade and financial openness, as well as economic institutions are statistically important determinants of the variation in financial development across countries and over time since the 1980s. However, we find mixed support for the hypothesis that the simultaneous opening of both trade and capital accounts is necessary to promote financial development in a contemporary setting

Topics: Financial development, Trade Openness, Financial Openness, Economic Institutions, Financial Liberalization, Dynamic Panel Data Analysis
Publisher: Dept. of Economics, University of Leicester
Year: 2007
OAI identifier:

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