Economic globalization and financial development in East Asia: a panel cointegration and causality analysis
This study examines the role of economic globalization in financial development in eight East Asian economies. The heterogeneous panel cointegration test reveals that cointegration is present among economic globalization, institutions, financial development, real gross domestic product per capita, a...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Taylor & Francis
2014
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| Online Access: | http://psasir.upm.edu.my/id/eprint/37189/ http://psasir.upm.edu.my/id/eprint/37189/1/Economic%20globalization%20and%20financial%20development%20in%20East%20Asia.pdf |
| _version_ | 1848848541742530560 |
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| author | Law, Siong Hook Wan Ngah, Wan Azman Saini Tan, Hui Boon |
| author_facet | Law, Siong Hook Wan Ngah, Wan Azman Saini Tan, Hui Boon |
| author_sort | Law, Siong Hook |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | This study examines the role of economic globalization in financial development in eight East Asian economies. The heterogeneous panel cointegration test reveals that cointegration is present among economic globalization, institutions, financial development, real gross domestic product per capita, and financial reforms. The Granger causality test results indicate that economic globalization has a significant causal influence on institutional quality, and institutional reforms have in turn facilitated and supported financial development, in particular of the banking sector in East Asia. Economic globalization is also found to have a favorable causal impact on stock market development without going through the institutional quality channel. |
| first_indexed | 2025-11-15T09:36:09Z |
| format | Article |
| id | upm-37189 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T09:36:09Z |
| publishDate | 2014 |
| publisher | Taylor & Francis |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-371892015-10-01T02:34:18Z http://psasir.upm.edu.my/id/eprint/37189/ Economic globalization and financial development in East Asia: a panel cointegration and causality analysis Law, Siong Hook Wan Ngah, Wan Azman Saini Tan, Hui Boon This study examines the role of economic globalization in financial development in eight East Asian economies. The heterogeneous panel cointegration test reveals that cointegration is present among economic globalization, institutions, financial development, real gross domestic product per capita, and financial reforms. The Granger causality test results indicate that economic globalization has a significant causal influence on institutional quality, and institutional reforms have in turn facilitated and supported financial development, in particular of the banking sector in East Asia. Economic globalization is also found to have a favorable causal impact on stock market development without going through the institutional quality channel. Taylor & Francis 2014 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/37189/1/Economic%20globalization%20and%20financial%20development%20in%20East%20Asia.pdf Law, Siong Hook and Wan Ngah, Wan Azman Saini and Tan, Hui Boon (2014) Economic globalization and financial development in East Asia: a panel cointegration and causality analysis. Emerging Markets Finance and Trade, 50 (1). pp. 210-225. ISSN 1540-496X; ESSN: 1558-0938 10.2753/REE1540-496X500112 |
| spellingShingle | Law, Siong Hook Wan Ngah, Wan Azman Saini Tan, Hui Boon Economic globalization and financial development in East Asia: a panel cointegration and causality analysis |
| title | Economic globalization and financial development in East Asia: a panel cointegration and causality analysis |
| title_full | Economic globalization and financial development in East Asia: a panel cointegration and causality analysis |
| title_fullStr | Economic globalization and financial development in East Asia: a panel cointegration and causality analysis |
| title_full_unstemmed | Economic globalization and financial development in East Asia: a panel cointegration and causality analysis |
| title_short | Economic globalization and financial development in East Asia: a panel cointegration and causality analysis |
| title_sort | economic globalization and financial development in east asia: a panel cointegration and causality analysis |
| url | http://psasir.upm.edu.my/id/eprint/37189/ http://psasir.upm.edu.my/id/eprint/37189/ http://psasir.upm.edu.my/id/eprint/37189/1/Economic%20globalization%20and%20financial%20development%20in%20East%20Asia.pdf |