Institutional Quality, Trade Openness, and Financial Development in Asia: An Empirical Investigation

24 Pages Posted: 23 Dec 2015

See all articles by Ha Thai Le

Ha Thai Le

RMIT University Vietnam

Jungsuk Kim

Sogang University - Institute of International and Area Studies

Minsoo Lee

Asian Development Bank

Date Written: September 2015

Abstract

We examine the determinants of financial development in Asia and the Pacific from 1995 to 2011. To do so, we apply the dynamic generalized method of moments to a panel data set of 26 economies in the region. We find that better governance and institutional quality foster financial development in developing economies while economic growth and trade openness are key determinants of financial depth in developed economies.

Keywords: Asia and the Pacific, economic growth, financial development, governance and institutional quality, panel data analysis, trade openness

JEL Classification: G10, G20

Suggested Citation

Le, Ha Thai and Kim, Jungsuk and Lee, Minsoo, Institutional Quality, Trade Openness, and Financial Development in Asia: An Empirical Investigation (September 2015). Asian Development Bank Economics Working Paper Series No. 452, Available at SSRN: https://ssrn.com/abstract=2707547 or http://dx.doi.org/10.2139/ssrn.2707547

Ha Thai Le

RMIT University Vietnam ( email )

702 Nguyen Van Linh Blvd
District 7
Ho Chi Minh City, Ho Chi Minh City
Vietnam
+84-983502188 (Phone)

Jungsuk Kim

Sogang University - Institute of International and Area Studies ( email )

35 Baekbeom-ro
Mapo-gu
Seoul, Seoul 121-742
Korea, Republic of (South Korea)

Minsoo Lee (Contact Author)

Asian Development Bank ( email )

6 ADB Avenue
Mandaluyong City
Metro Manila, 1550
Philippines
63-2-683-1622 (Phone)
63-2-636-2342 (Fax)

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