In this empirical paper, we revisit the financial development impact of financial globalization using a panel dataset comprising the OECD countries for the period 1996–2017. We rely on a multidimensional financial development index and the KOF financial globalization index. We find that financial globalization has a positive impact on financial development. Considering the heterogeneity in the conditional distributions of financial development, we also discover that financial globalization favourably impacts financial development across all the conditional distributions (quantiles) albeit with varying magnitude. These findings are robust to the KOF de facto and de jure measures of financial globalization as well as an alternative measure of financial globalization–financial openness index.
- Financial development
- Financial globalization
- Panel quantile estimation
ASJC Scopus subject areas
- Business, Management and Accounting (all)
- Economics, Econometrics and Finance (all)