Does External Trade Promote Financial Development?

Jonathan Temple and Yongfu Huang

No 5150, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: Several recent papers have argued that trade and financial development may be linked, either for political economy reasons, or because foreign competition and exposure to shocks lead to changes in the demand for external finance. In this paper we use the cross-country and time-series variation in openness to study the relationship between trade and finance in more detail. Our results suggest that increases in goods market openness are typically followed by sustained increases in financial depth.

Keywords: Trade; Financial development; Openness (search for similar items in EconPapers)
JEL-codes: F13 O16 (search for similar items in EconPapers)
Date: 2005-07
New Economics Papers: this item is included in nep-dev, nep-fmk, nep-int and nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (167)

Downloads: (external link)
https://cepr.org/publications/DP5150 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Working Paper: Does external trade promote financial development? (2005)
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:cpr:ceprdp:5150

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP5150

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().