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Financial Globalization and Financial Development in Transition Countries

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  • Edgar Demetrio Tovar García.

    () (National Research University “Higher School of Economics”, Moscow, Russia.)

Abstract

This paper examines the impact of fi nancial globalization on fi nancial development in transition countries. An empirical test is elaborated with new indicators of fi nancial globalization and financial development, closer to theoretical and conceptual framework. On the basis of Blundell and Bond (1998) a dynamic panel data model is employed. The principal results suggest, in general, that financial globalization has a positive and signifi cant relationship with the process of growth of the financial system, but not with the process of development, that is to say, without a better performance of basic fi nancial functions.

Suggested Citation

  • Edgar Demetrio Tovar García., 2012. "Financial Globalization and Financial Development in Transition Countries," Economía: teoría y práctica, Universidad Autónoma Metropolitana, México, vol. 36(1), pages 155-178, Enero-Jun.
  • Handle: RePEc:ety:journl:v:36:y:2012:i:1:p:155-178
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    References listed on IDEAS

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    Cited by:

    1. Magda Kandil & Muhammad Shahbaz & Samia Nasreen, 2015. "The interaction between globalization and financial development: new evidence from panel cointegration and causality analysis," Empirical Economics, Springer, pages 1317-1339.
    2. Juraev, Nosirjon, 2013. "Financial Integration and Economic Growth," MPRA Paper 55711, University Library of Munich, Germany, revised 01 Jan 2014.

    More about this item

    Keywords

    financial globalization; financial development; transition countries and dynamic panel data.;

    JEL classification:

    • F39 - International Economics - - International Finance - - - Other
    • G19 - Financial Economics - - General Financial Markets - - - Other
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • P20 - Economic Systems - - Socialist Systems and Transition Economies - - - General

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