On The Relationship Between Financial Development and Trade Openness

Öz

.

On The Relationship Between Financial Development and Trade Openness

Öz

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

Anahtar Kelimeler

• Causality, Financial Development, Panel, PMG, Trade Openness

Kaynakça

1. Al-Fayoumi, N. and Abuzayed, B. (2014). Does Openness Enhance Financial Sector Development? The Experience of The Arab World, Journal of Business, Vol. 9 (3), pp. 318-332.
2. Asghar, N., and Hussain, Z. (2014). Financial Development, Trade Openness and Economic Growth in Developing Countries: Recent Evidence from Panel Data. Pakistan Economic and Social Review, pp. 99-126.
3. Attaoui, I. Ammpurim B. and Gargouri, I. (2017).Causality Links among Renewable Energy Consumption, CO2 Emissions, and Economic Growth in Africa: Evidence from a Panel ARDL-PMG https://www.ncbi.nlm.nih.gov/pubmed/28382444. Approach. Online article, source
4. Baltagi, B. H., Demetriades, P. O., and Law, S. H. (2009). Financial Development and Openness: Evidence from Panel Data. Journal of Development Economics, Vol. 89(2), pp. 285-296.
5. Becker, B., Chen, J. and Greenberg, D., (2013). Financial Development, Fixed Costs, and International Trade.Rev. Corp. Finance Stud. Vol. 2 (1), pp. 1-28.
6. Desbordes, R. and Wei, S.J. (2017).The Effects of Financial Development on Foreign Direct Investment.Journal http://dx.doi.org/10.1016/j.jdeveco.2017.02.008. of Development Economics, source
7. Gächter, M. and Gkrintzalis, I. (2017). The Finance–Trade Nexus Revisited: Is the Global Trade Slowdown also a Financial Story? Economics Letters, Vol. 158, pp. 21-25.
8. Gries, T., Kraft, M., and Meierrieks, D. (2009). Linkages bBetween Financial Deepening, Trade Openness, and Economic Development: Causality Evidence from Sub-Saharan Africa. World Development, Vol. 37(12), pp. 1849-1860.

9. Hatemi-J, A. and Shamsuddin, M. (2016). The Causal Interaction between Financial Development and Human Development in Bangladesh, Applied Economics, pp, 2-4.
10. Kar, M., Nazlioglu, S. and Agir, H. (2014). Trade Openness, Financial Development and Economic BankacılıkveFinansalPiyasalar, Vol. 8 (1), pp. 63-86. in Turkey: Linear and Nonlinear Causality. BDDK
11. Kim, D.H., Lin, S.C. and Suen, Y.B. (2010).Dynamic Effects of Trade Openness on Financial Development, Economic Modelling, Vol. 27, pp. 254-261.
12. Lopez, L. and Weber, S. (2017). Testing for Granger Causality in Panel Data. Online article, source: https://www.unine.ch/files/live/sites/irene/files/shared/documents/Publications/Work ing%20papers/2017/WP17-03_V2.pdf.
13. Menyah, K., Nazlioglu, S., and Wolde-Rufael, Y. (2014). Financial Development, Trade Openness and Economic Growth In African Countries: New Insights from a Panel Causality Approach. Economic Modeling, Vol. 37, pp. 386-394.
14. Niroomand, F., Hajilee, M., and Al Nasser, O. M. (2014). Financial Market Development and Trade Openness: Evidence from Emerging Economies. Applied Economics, Vol. 6(13), pp. 1490-1498.
15. Pesaran M.H., Shin Y., Smith R.P. (1999).Pooled Mean Group Estimation of Dynamic Heterogeneous Panels.J Am Stat Assoc, Vol. 94, pp.621-634.
16. Rafindadi, A. A., and Ozturk, I. (2017). Dynamic Effects of Financial Development, Trade Openness and Economic Growth on Energy Consumption: Evidence from South Africa. International Journal of Energy Economics and Policy, Vol. 7(3), pp. 74-85.
17. Satrovic, E. (2017). Financial Development and Human Capital in Turkey: ARDL Approach, Cappadocia Academic Review, Vol. 1(2), pp. 1-15.
18. Satrovic, E. (2018a). Merits of Life Insurance, Munich: GRIN Verlag.
19. Satrovic, E. (2018b).Economic Output and High-Technology Export: Panel Causality Analysis. International Journal of Economic Studies, 4(3), 55-63.
20. Sehic, E. and Satrovic, E. (2014).Preliminary Panel Data Analysis of the Relationship between Life Insurance and Economic Development, 7th International Conference of the School of Economics and Business in Sarajevo. ISBN: 978-9958-25-046-0. APPENDIX 1 Algeria Argentina Armenia Australia* Azerbaijan Bahrain Bangladesh Belarus Bolivia Botswana Brazil Bulgaria* Cameroon Chile China Colombia Costa Rica Cote d'Ivoire Croatia*
21. 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*
22. United States* Uruguay
23. Note: * denotes developed countries. The rest
24. are developing countries.