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Financial Development and International Trade: Regional and Sectoral Analysis AgEcon
Susanto, Dwi; Rosson, C. Parr, III; Costa, Rafael F..
Financial development has been argued as a potential source of comparative advantage and its relationships with trade has been theoretically developed. This theory posits that countries that are well financially developed should experience greater volumes of international trade. We empirically investigate the effects of financial development on trade of both agricultural and manufactured products. The results show a positive impact of financial development on bilateral trade flows for the manufacturing sector, which enjoys a greater impact than the agricultural sector. The impacts differ across regions. In most cases, developing countries (Asia, Latin America, MENA and SSA) experience greater impacts of financial development on exports in both agriculture...
Tipo: Conference Paper or Presentation Palavras-chave: Agricultural sector; Comparative advantage; Financial development; International trade; Manufacturing sector; International Development; International Relations/Trade.
Ano: 2011 URL: http://purl.umn.edu/102647
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Financial Development, Institutional Quality and Economic Performance in East Asian Economies AgEcon
Law, Siong Hook; Habibullah, Muzafar Shah.
This paper examines the effects of financial development and institutional quality on economic performance in the East Asian economies using the panel cointegration and panel group mean fully modified OLS estimations. The empirical results based on the Solow growth model indicate that well developed institutional quality and financial market lead to the improved output per capita in East Asian economies. The effect of financial development on economic performance is larger when the financial system is embedded within a sound institutional framework. Thus, institutional improvements in these economies are important, not only in promoting economic development but also to deliver the benefits of financial development.
Tipo: Journal Article Palavras-chave: Financial development; Quality of institutions; Economic performance; Financial Economics; G20; E44.
Ano: 2006 URL: http://purl.umn.edu/50150
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