Institutional Quality, Trade Openness, and Financial Sector Development in Asia: An Empirical Investigation

By Thai‐Ha Le, Jungsuk Kim, Minsoo Lee. 2016

185 citations recorded by the source corpus.

ABSTRACT We examine the determinants of financial sector development in Asia and the Pacific from 1995 to 2011. In terms of economic growth, over the last twenty years the region has outperformed other parts of the world and has also experienced major developments in its traditionally bank-dominated financial system since the 1997 Asian financial crisis. We apply the dynamic generalized method of moments to a panel data set of twenty-six economies in the region. The estimations were done for the whole panel as well as for subpanels of developed and developing economies. We find that better governance and institutional quality foster financial sector development in developing economies while economic growth and trade openness are key determinants of financial depth in developed economies.

Subfields: Economics and Econometrics, Finance, Information Systems

View Paper: https://www.semanticscholar.org/paper/c300bc79a0b8889d45b96ffd5e4db649c6584210

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Economics and Econometrics

1. Mantu Kumar Mahalik
2. Muhammad Shahbaz
3. S. Nasreen
4. Qaisar Abbas
5. Avik Sinha
6. Syed Jawad Hussain Shahzad
7. Ilhan Ozturk
8. A. Acheampong

In Finance

1. Qaisar Abbas
2. S. Nasreen
3. Mantu Kumar Mahalik
4. Muhammad Shahbaz

In Information Systems

1. Mantu Kumar Mahalik
2. Qaisar Abbas
3. S. Nasreen
4. Muhammad Shahbaz
5. N. Othman
6. H. A. Bekhet

Citations in the corpus

• How do financial globalization, institutions and economic growth impact financial sector development in European countries? (2020, background): “Our results support ‘growth lead finance’ as documented by Baltagi et al. (2009), Filippidis and Katrakilidis (2014), Le et al. (2016).”