EconPapers    
Economics at your fingertips  
 

Institutional quality and financial development: The United States perspective

Muhammad Asif Khan, Muhammad Atif Khan, Mohamued Elyas Abdulahi, Idrees Liaqat and Sayyed Sadaqat Hussain Shah

Journal of Multinational Financial Management, 2019, vol. 49, issue C, 67-80

Abstract: This paper revisits the ambiguous natural resource rent and finance nexus in the context of the United States, incorporating the vital role of institutional quality in this paradigm. The literature on the subject matter lacks consensus and overlooks the institutional framework. The study utilizes a unique data set by the International Monetary Fund (IMF), considered the most comprehensive measure of financial development. Our findings based on a robust cointegration approach conclusively confirm that institutional quality is a significant prerequisite to financial development in the United States. The natural resource rent affects financial development negatively when we include proper controls in the estimation. However, we find that institutional quality moderates the natural resource rent and finance nexus. We recommend that policymakers and researchers consider the importance of institutions to come up with realistic estimations and policy inputs.

Keywords: G34; G18; G28; P48; O13; P28; Institutional quality; Financial development; Natural resource rent (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1042444X18302342
Full text for ScienceDirect subscribers only

Related works:
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:mulfin:v:49:y:2019:i:c:p:67-80

DOI: 10.1016/j.mulfin.2019.01.001

Access Statistics for this article

Journal of Multinational Financial Management is currently edited by I. Mathur and G. G. Booth

More articles in Journal of Multinational Financial Management from Elsevier
Bibliographic data for series maintained by Haili He ().

 
Page updated 2020-06-02
Handle: RePEc:eee:mulfin:v:49:y:2019:i:c:p:67-80