 Testing for causality among globalization, institution and financial development: Further evidence from three economic blocsIbrahim Muhammad Muye and Ibrahim Yusuf Muye Borsa Istanbul Review, 2017, vol. 17, issue 2, 117-132 Abstract: This paper employs several techniques to study the dynamic effect and causality among globalization, institutions and financial development. Specifically, we use the panel cointegration technique by Pedroni (1999, 2004); the DOLS approach by Kao and Chiang (1999); the FMOLS; the PMG technique of Pesaran et al. (1999) and the panel VECM causality approach. The panel cointegration test shows the existence of cointegration among our dataset. The Granger causality test demonstrates that causality runs from globalization to institutions, and institutions in turn Granger cause financial development specifically in the banking sector in the BRICS and MINT blocs. Globalization is further found to have a causal impact on the stock market, although bypassing the institutions channel. For the PMG, DOLS and FMOLS results, there is evidence of a positive long run relationship among globalization, institutions and financial development. Keywords: Globalization; Institutions; Financial development; Granger causality; Panel data analysis (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:bor:bistre:v:17:y:2017:i:2:p:117-132 Access Statistics for this article More articles in Borsa Istanbul Review from Research and Business Development Department, Borsa Istanbul Contact information at EDIRC. |
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