Trade openness, capital inflows and financial development in developing economies.
This paper examines the impact of trade openness and capital flows on financial development in developing countries using a dynamic panel GMM estimation technique. The empirical results reveal that trade openness and capital flows are statistically significant determinants of financial development....
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| Format: | Article |
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Taylor & Francis
2009
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| Online Access: | http://psasir.upm.edu.my/id/eprint/17456/ |
| _version_ | 1848843246051000320 |
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| author | Siong, Hook Law |
| author_facet | Siong, Hook Law |
| author_sort | Siong, Hook Law |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | This paper examines the impact of trade openness and capital flows on financial development in developing countries using a dynamic panel GMM estimation technique.
The empirical results reveal that trade openness and capital flows are statistically significant determinants of financial development. Simultaneous opening of both the trade and capital accounts also appear to have positive impacts on financial development. The evidence also
suggests that openness leads to improved financial development through institutional quality and competition channels. However, the institutional channel outperforms competition in ensuring the positive effects of openness on financial market depth in developing countries. |
| first_indexed | 2025-11-15T08:11:58Z |
| format | Article |
| id | upm-17456 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-15T08:11:58Z |
| publishDate | 2009 |
| publisher | Taylor & Francis |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-174562015-05-14T06:58:10Z http://psasir.upm.edu.my/id/eprint/17456/ Trade openness, capital inflows and financial development in developing economies. Siong, Hook Law This paper examines the impact of trade openness and capital flows on financial development in developing countries using a dynamic panel GMM estimation technique. The empirical results reveal that trade openness and capital flows are statistically significant determinants of financial development. Simultaneous opening of both the trade and capital accounts also appear to have positive impacts on financial development. The evidence also suggests that openness leads to improved financial development through institutional quality and competition channels. However, the institutional channel outperforms competition in ensuring the positive effects of openness on financial market depth in developing countries. Taylor & Francis 2009-09 Article PeerReviewed Siong, Hook Law (2009) Trade openness, capital inflows and financial development in developing economies. International Economic Journal, 23 (3). pp. 409-426. ISSN 1016-8737 Free trade - Developing countries Economic development 10.1080/10168730903268398 |
| spellingShingle | Free trade - Developing countries Economic development Siong, Hook Law Trade openness, capital inflows and financial development in developing economies. |
| title | Trade openness, capital inflows and financial development in developing economies. |
| title_full | Trade openness, capital inflows and financial development in developing economies. |
| title_fullStr | Trade openness, capital inflows and financial development in developing economies. |
| title_full_unstemmed | Trade openness, capital inflows and financial development in developing economies. |
| title_short | Trade openness, capital inflows and financial development in developing economies. |
| title_sort | trade openness, capital inflows and financial development in developing economies. |
| topic | Free trade - Developing countries Economic development |
| url | http://psasir.upm.edu.my/id/eprint/17456/ http://psasir.upm.edu.my/id/eprint/17456/ |