| 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: |
http://d.repec.org/n?u=RePEc:wef:wpaper:0022&r=fdg |