EconPapers    
Economics at your fingertips  
 

The interaction between globalization and financial development: new evidence from panel cointegration and causality analysis

Magda Kandil, Muhammad Shahbaz and Samia Nasreen

Empirical Economics, 2015, vol. 49, issue 4, 1317-1339

Abstract: The paper studies the impact of globalization on financial development in a sample of 32 developed and developing economies over the period 1989–2012. Indicators of financial development include three banking indicators (private sector credit, domestic credit, and liquid liabilities) and three indicators of stock market development (value traded, turnover ratio, and stock market capitalization), all relevant to GDP. Two panel estimation methodologies are under consideration: panel cointegration and panel VAR. The findings reveal that financial development affects economic growth and globalization positively. Globalization helps mobilize economic growth, but does not help financial development as it helps increase access to external financing. Quality institutions do not impact financial development although the latter increases incentives for better quality institutions in support of sustainable growth. Copyright Springer-Verlag Berlin Heidelberg 2015

Keywords: Financial development; Globalization; Cointegration; E51; F21; F36; F43; F61; F65 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19)

Downloads: (external link)
http://hdl.handle.net/10.1007/s00181-015-0922-2 (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: The Interaction between Globalization and Financial Development: New Evidence from Panel Co-integration and Causality Analysis (2013) Downloads
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:spr:empeco:v:49:y:2015:i:4:p:1317-1339

Ordering information: This journal article can be ordered from
http://www.springer. ... rics/journal/181/PS2

DOI: 10.1007/s00181-015-0922-2

Access Statistics for this article

Empirical Economics is currently edited by Robert M. Kunst, Arthur H.O. van Soest, Bertrand Candelon, Subal C. Kumbhakar and Joakim Westerlund

More articles in Empirical Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2025-03-22
Handle: RePEc:spr:empeco:v:49:y:2015:i:4:p:1317-1339