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

Le, Thai-ha; Kim, Jungsuk; Lee, Minsoo

Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/128574

Title:

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

Authors:

Le, Thai-ha
Kim, Jungsuk
Lee, Minsoo

Year of Publication:

2015

Series/Report no.:

ADB Economics Working Paper Series No. 452

Publisher:

Asian Development Bank (ADB), Manila

Abstract:

We examine the determinants of financial development in Asia and the Pacific from 1995 to 2011. To do so, we apply the dynamic generalized method of moments to a panel data set of 26 economies in the region. We find that better governance and institutional quality foster financial development in developing economies while economic growth and trade openness are key determinants of financial depth in developed economies.

Subjects:

Asia and the Pacific
economic growth
financial development
governance and institutionalquality
panel data analysis
trade openness

JEL:

G10
G20

Persistent Identifier of the first edition:

hdl:11540/5157

Creative Commons License: