Financial openness and financial market development

Jittima Tongurai, Chaiporn Vithessonthi

Research output: Contribution to journalArticleResearchpeer-review

7 Citations (Scopus)

Abstract

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.

Original languageEnglish
Article number100782
Number of pages16
JournalJournal of Multinational Financial Management
Volume67
DOIs
Publication statusPublished - Mar 2023
Externally publishedYes

Keywords

  • Banking sector
  • Bond markets
  • Financial market development
  • Financial openness
  • Stock markets

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