Openness, Institutions and Financial Development
AbstractUsing dynamic panel data techniques and data from 43 developing countries during 1980 – 2001, we provide evidence which suggests that openness and institutions are important determinants of financial development. Openness, in terms of trade and capital flows, is particularly potent in promoting financial development in middle-income countries, but much weaker in low-income countries. Our findings are robust to alternative measures of financial and trade openness, as well as estimation method and sample period.
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Bibliographic InfoPaper provided by ESRC World Economy and Finance Research Programme, Birkbeck, University of London in its series WEF Working Papers with number 0012.
Date of creation: May 2006
Date of revision:
Other versions of this item:
- F19 - International Economics - - Trade - - - Other
- G29 - Financial Economics - - Financial Institutions and Services - - - Other
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