Economic globalization and financial development in East Asia: a panel cointegration and causality analysis

Citation

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

Abstract

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.

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Additional Metadata

Item Type:	Article
Divisions:	Faculty of Economics and Management
DOI Number:	https://doi.org/10.2753/REE1540-496X500112
Publisher:	Taylor & Francis
Keywords:	Economic globalization; Financial development; Institutions; Panel data analysis
Depositing User:	Nabilah Mustapa
Date Deposited:	05 Aug 2015 02:25
Last Modified:	01 Oct 2015 02:34
Altmetrics:	http://www.altmetric.com/details.php?domain=psasir.upm.edu.my&doi=10.2753/REE1540-496X500112
URI:	http://psasir.upm.edu.my/id/eprint/37189
Statistic Details:	View Download Statistic

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