The Effect of Financial Development on Economic Sophistication: Evidence from Panel Data

5 Pages Posted: 5 Apr 2019

See all articles by Lan Chu Khanh

Lan Chu Khanh

State Bank of Vietnam - Banking Academy of Vietnam

Date Written: March 14, 2019

Abstract

This paper examines the effect of financial development on economic sophistication. We use domestic credit to private sectors and stock market liquidity variables to measure financial development and Economic Complexity Index to measure the economic sophistication. Using a panel data set of 97 countries from 1968 to 2015 and system generalized method of moments estimation, we find that financial development has a positive effect on economic sophistication.

Keywords: financial development, economic complexity, panel data

JEL Classification: E44, G10, O1

Suggested Citation

Chu Khanh, Lan, The Effect of Financial Development on Economic Sophistication: Evidence from Panel Data (March 14, 2019). Available at SSRN: https://ssrn.com/abstract=3352387 or http://dx.doi.org/10.2139/ssrn.3352387

Lan Chu Khanh (Contact Author)

State Bank of Vietnam - Banking Academy of Vietnam ( email )

No.12, Chuaboc Street
Hanoi, Hanoi 10000
Vietnam
+84948788789 (Phone)

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