2007-12-08 papers

on Financial Development and Growth

Issue of 2007–12–08
one paper chosen by
Georg Man,

Financial Development, Openness and Institutions: Evidence from Panel Data By Badi H. Baltagi; Panicos O. Demetriades; Siong Hook Law

Financial Development, Openness and Institutions: Evidence from Panel Data

By:	Badi H. Baltagi (Syracuse University and University of Leicester); Panicos O. Demetriades (University of Leicester); Siong Hook Law (University Putra Malaysia)
Abstract:	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.
Keywords:	Financial development, Trade Openness, Financial Openness, Economic Institutions, Financial Liberalization, Dynamic Panel Data Analysis
JEL:	F19 G29
Date:	2007–05
URL:	https://d.repec.org/n?u=RePEc:wef:wpaper:0022

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