The financial development impact of financial globalization revisited: A focus on OECD countries

Olufemi Adewale Aluko and Eric Opoku

International Economics, 2022, issue 169, 13-29

Abstract: In this empirical paper, we revisit the financial development impact of financial globalization using a panel dataset comprising the OECD countries for the period 1996–2017. We rely on a multidimensional financial development index and the KOF financial globalization index. We find that financial globalization has a positive impact on financial development. Considering the heterogeneity in the conditional distributions of financial development, we also discover that financial globalization favourably impacts financial development across all the conditional distributions (quantiles) albeit with varying magnitude. These findings are robust to the KOF de facto and de jure measures of financial globalization as well as an alternative measure of financial globalization–financial openness index.

Keywords: Financial globalization; Financial development; Panel quantile estimation; OECD (search for similar items in EconPapers)
JEL-codes: F36 G10 G20 O50 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:cii:cepiie:2022-q2-169-2

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