On the political economy of financial reform

This paper studies what induces governments to undertake reforms aimed at financial development. Its starting point is Abiad and Mody (AER 95(1), 2005). Rather than their ordered logit technique, it uses a within groups approach allowing for error dependence across countries and over time. This paper finds that policy change in a country is negatively rather than positively associated with its liberalization level, while the regional liberalization gap does not appear relevant. On the effects of shocks and crises, it suggests that some of the Abiad and Mody (2005) findings are robust, but others are fragile. Furthermore, it claims that the extent of democracy is important for this analysis, and identifes a negative effect of the extent of democracy on policy reform.Financial liberalization; Financial reform; Political economy; Cross country dependence

Will political liberalisation bring about financial development?

This paper studies the e¤ect of political liberalisation on financial development in two steps. First, the paper examines whether political liberalisation in terms of institutional improvement promotes financial development, using a panel dataset of 90 developed and developing countries over 1960-99. The empirical evidence reveals a positive effect on financial development at least in the short-run, particularly for lower-income countries, ethnically divided countries and French legal origin countries. In the second part of the paper, a before-after event study approach is used to explore the impact of democratic transitions on financial development. It indicates that a democratic transformation is typically followed by an increase in financial development.Political liberalisation; Financial development.

Does external trade promote financial development?

Several recent papers have argued that trade and financial development may be linked, either for political economy reasons, or because foreign competition and exposure to shocks lead to changes in the demand for external finance. In this paper we use the cross-country and time-series variation in openness to study the relationship between trade and finance in more detail. Our results suggest that increases in goods market openness are typically followed by sustained increases in financial depth.openness, trade, financial development.

Determinants of Financial Development

"As the world has witnessed the worst financial crisis and climate crisis of our age, during the period of 2007-2009, the issues surrounding the emergence and development of financial markets and carbon markets is becoming an increasingly significant area of research and debate worldwide. By engaging with recently developed methods of research and new areas of practice, this book investigates the political, economic, policy and geographic determinants of the development of financial markets. The volume examines the causality between financial development and aggregate private investment from an economic perspective. It also explores the consequences of political liberalization, focusing on the impact of institutional improvement on financial development. It studies what stimulates governments to initiate reforms aimed at boosting financial development, and analyses the determinants of carbon markets in developing countries from a geographic point of view. This book is essential reading for all interested in economic and financial development, climate change, environmental economics, and applied econometrics.

What determines financial development?

This paper studies the fundamental determinants of cross-country differences in finnancial development. Two prominent tools for addressing model uncertainty, Bayesian Model Averaging and Automatic Model Selection using PcGets, are jointly applied to investigate the financial development effects of a wide range of variables taken from various sources. The analysis suggests that the level of financial development in a country is determined by its institutional quality, macroeconomic policies, and geographic characteristics, as well as the level of income and cultural characteristics.Financial development, Model uncertainty, Bayesian Model Averaging, PcGets

Determinants of Financial Development

"As the world has witnessed the worst financial crisis and climate crisis of our age, during the period of 2007-2009, the issues surrounding the emergence and development of financial markets and carbon markets is becoming an increasingly significant area of research and debate worldwide. By engaging with recently developed methods of research and new areas of practice, this book investigates the political, economic, policy and geographic determinants of the development of financial markets. The volume examines the causality between financial development and aggregate private investment from an economic perspective. It also explores the consequences of political liberalization, focusing on the impact of institutional improvement on financial development. It studies what stimulates governments to initiate reforms aimed at boosting financial development, and analyses the determinants of carbon markets in developing countries from a geographic point of view. This book is essential reading for all interested in economic and financial development, climate change, environmental economics, and applied econometrics.

Private investment and financial development in a globalized world

Using recently developed panel data techniques on data for 43 developing countries over the period 1970-98, this paper provides an exhaustive analysis of causality between aggregate private investment and financial development. GMM estimation on averaged data, and a common factor approach on annual data allowing for global interdependence and heterogeneity across countries suggest positive causal effects going in both directions. The finding has rich implications for the development of financial markets and the conduct of macroeconomic policies in developing countries in an integrated global economy.Private Investment, Financial Development, Global Interdependence, Common Factor Analysis, Panel Unit Root Test, Panel Cointegration Test

Saikosaponins induced hepatotoxicity in mice via lipid metabolism dysregulation and oxidative stress: a proteomic study

Background Radix Bupleuri (RB) has been popularly used for treating many liver diseases such as chronic hepatic inflammation and viral Hepatitis in China. Increasing clinical and experimental evidence indicates the potential hepatotoxicity of RB or prescriptions containing RB. Recently, Saikosaponins (SS) have been identified as major bioactive compounds isolated from RB, which may be also responsible for RB-induced liver injury. Methods Serum AST, ALT and LDH levels were determined to evaluate SS-induced liver injury in mice. Serum and liver total triglyceride and cholesterol were used to indicate lipid metabolism homeostasis. Liver ROS, GSH, MDA and iNOS were used to examine the oxidative stress level after SS administration. Western blot was used to detect CYP2E1 expression. A 8-Plex iTRAQ Labeling Coupled with 2D LC - MS/MS technique was applied to analyze the protein expression profiles in livers of mice administered with different doses of SS for different time periods. Gene ontology analysis, cluster and enrichment analysis were employed to elucidate potential mechanism involved. HepG2 cells were used to identify our findings in vitro. Results SS dose- and time-dependently induced liver injury in mice, indicated by increased serum AST, ALT and LDH levels. According to proteomic analysis, 487 differentially expressed proteins were identified in mice administrated with different dose of SS for different time periods. Altered proteins were enriched in pathways such as lipid metabolism, protein metabolism, macro molecular transportation, cytoskeleton structure and response to stress. SS enhanced CYP2E1 expression in a time and dose dependent manner, and induced oxidative stress both in vivo and in vitro. Conclusion Our results identified hepatotoxicity and established dose-time course-liver toxicity relationship in mice model of SS administration and suggested potential mechanisms, including impaired lipid and protein metabolism and oxidative stress. The current study provides experimental evidence for clinical safe use of RB, and also new insights into understanding the mechanism by which SS and RB induced liver injury