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Financial structure in the age of globalization

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  • Thi Hong Hanh Pham

Abstract

Using a large panel data set covering 160 countries over the period 1990 to 2010, this article aims to address the question of how financial structure (bank-based versus market-based system) changes when economies are liberalized and opened to international capital markets. Specifically, in this study, globalization is characterized not only by trade and financial integration but also by other important aspects, such as social globalization, political globalization and cultural globalization. The empirical results support the impacts of globalization on financial structure, which are, however, diverse and strongly depend on the way to measure globalization and financial structure. Our finding also reveals a significant change in financial structure after the globalization process, except the case of low-income countries, in which financial structure seems to be not correlated with either globalization process or other macroeconomic variables.

Suggested Citation

  • Thi Hong Hanh Pham, 2014. "Financial structure in the age of globalization," Applied Economics, Taylor & Francis Journals, vol. 46(23), pages 2792-2813, August.
    • Handle: RePEc:taf:applec:v:46:y:2014:i:23:p:2792-2813
    DOI: 10.1080/00036846.2014.914150
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    References listed on IDEAS

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    1. Levine, Ross, 2002. "Bank-Based or Market-Based Financial Systems: Which Is Better?," Journal of Financial Intermediation, Elsevier, vol. 11(4), pages 398-428, October.
    2. W. J. Henisz, 2000. "The Institutional Environment for Economic Growth," Economics and Politics, Wiley Blackwell, vol. 12(1), pages 1-31, March.
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    Cited by:

    1. Wafa Ghardallou, 2021. "Political origins of financial structure in developing countries," Review of Development Economics, Wiley Blackwell, vol. 25(2), pages 895-915, May.

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