Do financial systems converge? New evidence from financial assets in OECD countries
AbstractThe objective of this paper is to study the issue of convergence of financial systems through the lens of asset allocation. It examines β- and σ-convergence of the most important financial instruments: deposits, debt securities, shares and insurance products. The analysis is conducted on two panels of OECD countries, using data gathered from the flow of funds and from the Financial Development and Structure Database (Beck et al., 2009). In both data sets, strong evidence supports the existence of β-convergence of shares and insurance products, confirming an increasing importance of capital markets all over the developed world. In contrast, mixed results are obtained for debt securities and deposits due to differences across countries in the weight of national public debts and in the role of banks.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Comparative Economics.
Volume (Year): 40 (2012)
Issue (Month): 1 ()
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Web page: http://www.elsevier.com/locate/inca/622864
Financial systems; β- and σ-convergence;
Find related papers by JEL classification:
- F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
- G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
- G20 - Financial Economics - - Financial Institutions and Services - - - General
- O16 - Economic Development, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
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