Núm. 36 (2012)

Financial Globalization and Financial Development in Transition Countries

Edgar Demetrio Tovar García
National Research University “Higher School of Economics”
Publicado junio 1, 2012
Palabras clave
  • fi nancial globalization,
  • fi nancial development,
  • transition countries and dynamic panel data


This paper examines the impact of fi nancial globalization on fi nancial development in transition countries. An empirical test is elaborated with new indicators of fi nancial globalization and fi nancial development, closer to theoretical and conceptual framework. On the basis of Blundell and Bond (1998) a dynamic panel data model is employed. The principal results suggest, in general, that fi nancial globalization has a positive and signifi cant relationship with the process of growth of the fi nancial system, but not with the process of development, that is to say, without a better performance of basic fi nancial functions.


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