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Financial Development, Openness and Institutions: Evidence from Panel Data

Author

Listed:
  • Badi Baltagi

    (Department of Economics University of Leicester)

  • Panicos Demetriades

    () (University of Leicester)

  • Siong Hook Law

    (University Putra Malaysia)

Abstract

Using dynamic panel data techniques and several data sets, we provide new evidence on the effects of openness and institutions on financial development. Our findings suggest that openness and institutions are potentially very important factors for different aspects of financial development. They do not however provide much support to the simultaneous openness hypothesis of Rajan and Zingales (2003), suggesting that a more nuanced openness or political economy story may be required to explain the variation of financial development across countries and over tim

Suggested Citation

  • Badi Baltagi & Panicos Demetriades & Siong Hook Law, 2007. "Financial Development, Openness and Institutions: Evidence from Panel Data," Money Macro and Finance (MMF) Research Group Conference 2006 166, Money Macro and Finance Research Group.
  • Handle: RePEc:mmf:mmfc06:166
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Financial development; Trade Openness; Financial Openness; Financial Liberalisation; Dynamic Panel Data Analysis;

    JEL classification:

    • F19 - International Economics - - Trade - - - Other
    • G29 - Financial Economics - - Financial Institutions and Services - - - Other

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