Openness, Financial Markets, and Policies: Cross-Country and Dynamic Patterns

Giuseppe Bertola and Anna Lo Prete

No 7048, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: We document significant and robust empirical relationships in cross-country panel data between government size or social expenditure on the one hand, and trade and financial development indicators on the other. Across countries, deeper economic integration is associated with more intense government redistribution, but more developed financial markets weaken that relationship. Over time, controlling for country-specific effects, public social expenditure appears to be eroded by globalization trends where financial market development can more easily substitute for it.

Keywords: Financial development; Globalization; Social policy (search for similar items in EconPapers)
JEL-codes: F4 (search for similar items in EconPapers)
Date: 2008-11
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
https://cepr.org/publications/DP7048 (application/pdf)

Related works:
Journal Article: Openness, Financial Markets and Policies: Cross-Country and Dynamic Patterns (2009)
Working Paper: Openness, Financial Markets, and Policies: Cross-Country and Dynamic Patterns (2008)
Working Paper: Openness, financial markets, and policies: Cross-country and dynamic patterns (2008)
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:7048

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP7048

Access Statistics for this paper

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