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Private investment and financial development in a globalized world Author info | Abstract | Publisher info | Download info | Related research | Statistics Yongfu Huang ()
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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.
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Paper provided by Department of Economics, University of Bristol, UK in its series Bristol Economics Discussion Papers with number
06/589.
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Length: 49 pages
Date of creation: Jul 2006Date of revision:
Handle: RePEc:bri:uobdis:06/589Contact details of provider: Postal: 8 Woodland Road, Bristol, BS8 1TN Phone: 0117 928 8415 Fax: 0117 928 8577 Email: Web page: http://www.efm.bris.ac.uk/ More information through EDIRC
For technical questions regarding this item, or to correct its listing, contact: (David Demery).
Keywords: Private Investment ; Financial Development ; Global Interdependence ; Common Factor Analysis ; Panel Unit Root Test ; Panel Cointegration Test ; Find related papers by JEL classification: F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics E22 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Capital; Investment; Capacity E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
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references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Yongfu Huang, 2005.
"What determines financial development? ,"
Bristol Economics Discussion Papers
05/580, Department of Economics, University of Bristol, UK.
[Downloadable!]
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