How do financial globalization, institutions and economic growth impact financial sector development in European countries?

Samia Nasreen, Mantu Mahalik (), Muhammad Shahbaz and Qaisar Abbas

Research in International Business and Finance, 2020, vol. 54, issue C

Abstract: This paper examines the role of financial globalization, institutions and economic growth on the development of financial sector in European countries. We use panel data covering the period of 1989−2016. Using the composite index of financial development covers various dimensions of financial market, that is, depth, access and efficiency and four-way classification of institutions as suggested by Rodrik (2005) and Law et al. (2018), the empirical results indicate that economic growth and institutional quality are positively associated with financial development. Contrarily, financial globalization hinders the process of financial sector development. The results are robust to using alternative proxies of economic growth, institutional indicators and capturing the period of financial crisis. These empirical findings suggest policy guidelines to develop financial sector by using globalization, institutional quality and economic growth as economic tools.

Keywords: Economic growth; Financial development; Financial globalization; Institutions (search for similar items in EconPapers)
JEL-codes: D90 F13 G10 O16 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (28)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0275531919303605
Full text for ScienceDirect subscribers only

Related works:
Working Paper: How Do Financial Globalization, Institutions and Economic Growth Impact Financial Sector Development in European Countries? (2020)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:54:y:2020:i:c:s0275531919303605

DOI: 10.1016/j.ribaf.2020.101247

Access Statistics for this article

Research in International Business and Finance is currently edited by T. Lagoarde Segot

More articles in Research in International Business and Finance from Elsevier
Bibliographic data for series maintained by Catherine Liu ().