Testing for causality among globalization, institution and financial development: Further evidence from three economic blocs

Muye, Ibrahim Muhammad; Muye, Ibrahim Yusuf

doi:10.1016/j.bir.2016.10.001

Cited by 68 publications

(41 citation statements)

References 56 publications

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“…In this line, Odhiambo (2009) Demetriades and Hussein (1996) The seminal argument proposed by Mishkin (2009) is a theoretical in nature but it lacks empirical scrutiny. In connection to the Mishkin's (2009) hypothesis linking the relationship between globalization and financial development through the channel of institutional quality, few empirical studies have been emerged to understand the nexus between two (La Porta et al 1997, Huang and Temple 2005, García 2011, Falahaty and Law 2012, Chen and Emile 2013, Law et al 2015, Kandil et al 2015, Luo et al 2016, Muye and Muye 2017, Shahbaz et al 2018a. La Porta et al (1997) in their empirical study found that trade openness (proxy for globalization) promotes financial development for richer economies, but not for poorer economies.…”

Section: Review Of Literaturementioning

confidence: 99%

“…Recently,Luo et al (2016) using their time series analysis, found that trade and financial openness have beneficial effects on financial efficiency but also found its adverse effects on the size of financial development in China Muye and Muye (2017). using the time series framework, also found the positive long-run relationship between globalization and financial development for the BRICS region.…”

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confidence: 98%

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How do financial globalization, institutions and economic growth impact financial sector development in European countries?

Nasreen

Mahalik

Shahbaz

et al. 2020

Research in International Business and Finance

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This paper examines the role of financial globalization, institutions and economic growth on the development of financial sector in European countries. We use panel data covering the period of 1989-2016. Using the composite index of financial development covers various dimensions of financial market, that is, depth, access and efficiency and four-way classification of institutions as suggested by Rodrick (2005) and Law et al. (2018), the empirical results indicate that economic growth and institutional quality are positively associated with financial development. Contrarily, financial globalization hinders the process of financial sector development. The results are robust to using alternative proxies of economic growth, institutional indicators and capturing the period of financial crisis. These empirical findings suggest policy guidelines to develop financial sector by using globalization, institutional quality and economic growth as economic tools.

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Section: Review Of Literaturementioning

confidence: 99%

mentioning

confidence: 98%

How do financial globalization, institutions and economic growth impact financial sector development in European countries?

Nasreen

Mahalik

Shahbaz

et al. 2020

Research in International Business and Finance

View full text Add to dashboard Cite

show abstract

“…Luo, Zhang and Zhu (2016) in China, using time series analysis, found that commercial and financial openness had valuable effects on financial performance but also negative effects on the size of financial development. Muye and Muye (2017), also found positive long-run relationship between globalization and financial development for the BRICS countries, using the time series data.…”

Section: Literatur Reviewmentioning

confidence: 68%

Financial globalization, institutions and economic growth impact on financial sector development in fragile countries using GMM estimator

Gulcemal¹

2021

Pressacademia

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“…Researchers hypothesis that interest groups politically impose some bindings on the dominant firms to preserve their competitive position in the market (Mishkin, 2009; R. G. Rajan & Zingales, 2003). But with the development of trade openness and capital flow, FD can make the level playing field for all firms (Muye & Muye, 2017). Thus, financial development will have positive effects on cross-country transactions.…”

Section: Effect Of Fdi To Develop the Existing Financial Systemmentioning

confidence: 99%

Financial development and foreign direct investment nexus: A systematic review of literature

Islam

Hossain²,

Khan³

et al. 2021

IJRBS

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In this study, we review the literature to find how the financial development of a country attracts foreign direct investments for a sustainable real sector development of the country. The area is least focused on literature. Thus we don’t limit our search and review to any time or database or journal category. We find the theoretical logic and empirical evidence so far available in the literature. Our review finds that the development of the financial sector of a country is one of the most important attractors of FDIs. Theoretically, financial sector development works as a symbol of trust and goodness to the new potential investors and a good resource allocation channel for the existing investors. However, very few researchers find that FDIs are more prone to countries with a low developed financial system which may happen due to the presence of risk-taker foreign investors and risk-averse domestic entrepreneurs.

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Testing for causality among globalization, institution and financial development: Further evidence from three economic blocs

Cited by 68 publications

References 56 publications

How do financial globalization, institutions and economic growth impact financial sector development in European countries?

How do financial globalization, institutions and economic growth impact financial sector development in European countries?

Financial globalization, institutions and economic growth impact on financial sector development in fragile countries using GMM estimator

Financial development and foreign direct investment nexus: A systematic review of literature

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