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Financial Development, Openness and Institutions: Evidence from Panel Data

Author

Listed:
  • Badi H. Baltagi
  • Panicos O. Demetriades
  • Siong Hook Law
Abstract
Utilising four annual panel datasets and dynamic panel data estimation procedures we find that trade and financial openness, as well as economic institutions are statistically important determinants of the variation in financial development across countries and over time since the 1980s. However, we find mixed support for the hypothesis that the simultaneous opening of both trade and capital accounts is necessary to promote financial development in a contemporary setting.

Suggested Citation

  • Badi H. Baltagi & Panicos O. Demetriades & Siong Hook Law, 2007. "Financial Development, Openness and Institutions: Evidence from Panel Data," Discussion Papers in Economics 07/05, Division of Economics, School of Business, University of Leicester.
    • Handle: RePEc:lec:leecon:07/5
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    References listed on IDEAS

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    More about this item

    Keywords

    Financial development; Trade Openness; Financial Openness; Economic Institutions; Financial Liberalization; Dynamic Panel Data Analysis;
    All these keywords.

    JEL classification:

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

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    This paper has been announced in the following NEP Reports:

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