On The Relationship Between Financial Development and Trade Openness

The aim of this paper is to evaluate the relationship, if any, between trade openness and the financial development in both, developed and developing countries. The relevance ofthe openness of the trade TO on the development of financial sector FD is explored in three panels. The first overall panel contains 64countries; the second contains 13 developed countries, while the third panel contains 51 developing countries over the period 1995-2016. Models are initially estimated using linear static and dynamic panel data estimators for balanced panel. Since N

Keywords:

Causality, Financial Development, Panel PMG, Trade Openness,

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Czech Republic* Ecuador Egypt Fiji Georgia Ghana Haiti Honduras Hong Kong Hungary* Iceland* India Indonesia Japan* Kazakhstan Kenya Kyrgyz Rep. Macedonia Malaysia Mexico Mongolia Morocco Nepal Norway* Oman Pakistan Panama Paraguay Peru Philippines Poland* Qatar Romania* Saudi Arabia Senegal Singapore Switzerland* Thailand Tunisia Turkey Uganda Ukraine United Kingdom*
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