The financial development impact of financial globalization revisited: A focus on OECD countries

Olufemi Adewale Aluko; Eric Evans Osei Opoku

doi:10.1016/j.inteco.2021.11.001

The financial development impact of financial globalization revisited: A focus on OECD countries

Olufemi Adewale Aluko, Eric Evans Osei Opoku

Department of Finance, Accounting and Economics

Research output: Journal Publication › Article › peer-review

17 Citations (Scopus)

Abstract

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.

Original language	English
Pages (from-to)	13-29
Number of pages	17
Journal	International Economics
Volume	169
DOIs	https://doi.org/10.1016/j.inteco.2021.11.001
Publication status	Published - May 2022

Keywords

Financial development
Financial globalization
OECD
Panel quantile estimation

ASJC Scopus subject areas

General Economics,Econometrics and Finance
General Business,Management and Accounting

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10.1016/j.inteco.2021.11.001

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title = "The financial development impact of financial globalization revisited: A focus on OECD countries",

abstract = "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.",

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doi = "10.1016/j.inteco.2021.11.001",

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AU - Aluko, Olufemi Adewale

AU - Opoku, Eric Evans Osei

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Y1 - 2022/5

N2 - 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.

AB - 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.

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KW - Financial globalization

KW - OECD

KW - Panel quantile estimation

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SN - 2110-7017

VL - 169

SP - 13

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JO - International Economics

JF - International Economics

ER -

The financial development impact of financial globalization revisited: A focus on OECD countries

Abstract

Keywords

ASJC Scopus subject areas

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