Arbeitspapier
The Short-Run and Long-Run Effects of Trade Openness on Financial Development: Some Panel Evidence for Europe
This paper analyses the short- and long-run effects of trade openness on financial development in a panel including data on 35 European countries over the period 2001-2019. For this purpose, it uses the PMG (pooled mean group) estimator for dynamic panels developed by Pesaran et al. (1999). The results differ depending on the income, governance and financial development level of the countries considered. In particular, it appears that in the middle-income countries trade openness tends to strengthen financial development in the long run but to have an adverse effect in the short run. By contrast, in the case of high-income countries with better institutions and a higher level of financial development, there is a positive and significant impact in the short run. Some policy implications of these findings are drawn.
- Sprache
-
Englisch
- Erschienen in
-
Series: CESifo Working Paper ; No. 9082
Klassifikation
Wirtschaft
Policy Objectives; Policy Designs and Consistency; Policy Coordination
Trade Policy; International Trade Organizations
Economic Integration
Single Equation Models; Single Variables: Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
Policy Objectives; Policy Designs and Consistency; Policy Coordination
Trade Policy; International Trade Organizations
Economic Integration
Single Equation Models; Single Variables: Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
Thema
trade openness
financial development
panel data
PMG estimator
Europe
financial development
panel data
PMG estimator
Europe
Ereignis
Geistige Schöpfung
(wer)
Caporale, Guglielmo Maria
Sova, Anamaria
Sova, Robert
Sova, Anamaria
Sova, Robert
Ereignis
Veröffentlichung
(wer)
Center for Economic Studies and Ifo Institute (CESifo)
(wo)
Munich
(wann)
2021
- Handle
- Letzte Aktualisierung
-
20.09.2024, 08:22 MESZ
Objekttyp
- Arbeitspapier
Beteiligte
- Caporale, Guglielmo Maria
- Sova, Anamaria
- Sova, Robert
- Center for Economic Studies and Ifo Institute (CESifo)
Entstanden
- 2021
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