Abstract
There is a broad consensus in the finance-growth literature that, with few exceptions, there exists a positive long run relationship between financial development and economic growth. As a result of this widespread consensus, the finance-growth literature has recently begun to shift its attention towards the determinants of financial development. The present study has been conducted to examine the impact of capital flows, trade openness and institutions on the financial development of D-8 countries. Using dynamic panel data techniques for the period 1985 to 2008, the study finds that capital flows, trade openness and institutions are the significant determinates of financial development in D-8 countries. The findings of the study are robust to alternative measures of financial development, as well as estimation method.
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Article Details
- Year: 2011
- Volume: 32
- Issue: 1
- Pages: 71 - 91
- Accepted: 23.03.2011
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DOI:
https://doi.org/10.5281/zenodo.21126136 -
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How to Cite?
Faiz Bilquess, Tahir Mukhtar, Sidra Sohail (2011). What Matters for Financial Development in D-8 Countries? Capital Flows, Trade Openness and Institutions. Journal of Economic Cooperation and Development, 32(1), 71-91. https://doi.org/10.5281/zenodo.21126136
