TY - JOUR
T1 - Financial openness and financial market development
AU - Tongurai, Jittima
AU - Vithessonthi, Chaiporn
N1 - Funding Information:
The authors thank participants at the 2017 Annual Meeting of the Academy of International Business-US Midwest Chapter, held in Chicago, for helpful comments. An earlier version of this paper was circulated under the title “Financial Openness, Financial Markets Development and Economic Growth: Evidence from Asia, Europe and Americas”. This work was supported by JSPS KAKENHI Grant Number 18K01685 .
Publisher Copyright:
© 2023 Elsevier B.V.
PY - 2023/3
Y1 - 2023/3
N2 - In this paper, we empirically study the linkages between financial openness and financial development using a sample of 164 countries during 1960–2020. Based on the results of the estimation of systems of equations, we find that the relationship between relative financial openness and relative banking sector development is positive and bidirectional. Likewise, the relationship between relative financial openness and relative stock market development is positive and bidirectional. However, the relationship between relative financial openness and relative bond market development is negative and bidirectional.
AB - In this paper, we empirically study the linkages between financial openness and financial development using a sample of 164 countries during 1960–2020. Based on the results of the estimation of systems of equations, we find that the relationship between relative financial openness and relative banking sector development is positive and bidirectional. Likewise, the relationship between relative financial openness and relative stock market development is positive and bidirectional. However, the relationship between relative financial openness and relative bond market development is negative and bidirectional.
KW - Banking sector
KW - Bond markets
KW - Financial market development
KW - Financial openness
KW - Stock markets
UR - http://www.scopus.com/inward/record.url?scp=85146453585&partnerID=8YFLogxK
U2 - 10.1016/j.mulfin.2023.100782
DO - 10.1016/j.mulfin.2023.100782
M3 - Article
AN - SCOPUS:85146453585
SN - 1042-444X
VL - 67
JO - Journal of Multinational Financial Management
JF - Journal of Multinational Financial Management
M1 - 100782
ER -