Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/270109 
Year of Publication: 
2021
Citation: 
[Journal:] Cogent Economics & Finance [ISSN:] 2332-2039 [Volume:] 9 [Issue:] 1 [Article No.:] 1937848 [Year:] 2021 [Pages:] 1-17
Publisher: 
Taylor & Francis, Abingdon
Abstract: 
This study investigates the influences of trade and financial openness on financial development over the period 2003-2017 from a sample of 64 developing countries, employing a Bayesian model averaging approach to take into account model uncertainty. The results demonstrate that the contribution of trade openness to financial development is important in developing economies with better institutions. However, financial openness has an insignificant positive effect on financial development. There is no evidence to support the Rajan and Zingales hypothesis that the simultaneous openness to both trade and capital flows promotes financial development. Our findings also indicate that a better institutions environment allows a developing economy to exploit the benefits of openness to financial development.
Subjects: 
Bayesian model averaging
developing countries
financial development
O16.
Openness
JEL: 
F19
F36
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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