Impact of Financial and Trade Openness on Financial Development in Oil and Non-Oil Developing Countries using the Panel ARDL Approach (With Emphasis on Institutional Components)
Given the importance of financial development to achieve sustainable economic growth, the main objective of this study is to investigate the effect of economic openness (financial and trade openness) on financial development (with emphasis on institutional components) in two groups of oil and non-o...
| Main Authors: | , , |
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| Format: | Article |
| Language: | fas |
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Institute for Management and Planning Studies
2020-02-01
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| Series: | برنامهریزی و بودجه |
| Subjects: | |
| Online Access: | http://jpbud.ir/article-1-1772-en.html |
| _version_ | 1797937932399542272 |
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| author | Bahram Sahabi Mehdi Zolfaghari Somayyeh Alavi |
| author_facet | Bahram Sahabi Mehdi Zolfaghari Somayyeh Alavi |
| author_sort | Bahram Sahabi |
| collection | DOAJ |
| description | Given the importance of financial development to achieve
sustainable economic growth, the main objective of this study is to investigate the effect of economic openness (financial and trade openness) on financial development (with emphasis on institutional components) in two groups of oil and non-oil developing countries. In this regard, the Panel ARDL method has been used for the period 2000-2017. The estimated results indicate a positive and significant effect of financial openness on financial development in the oil developing countries and its negative and significant impact on financial development of the non-oil developing countries in the long run. Also, the results show that trade openness has a significant and positive effect on financial development in non-oil developing countries in the long run. While the relationship of trade openness with financial development is statistically meaningless in the oil developing countries. Furthermore, most of the institutional variables in the developing countries have played a positive role in promoting the financial development index in the short-term and long-term. Nevertheless, the effect of these variables on financial development in the non-oil developing countries is very limited in the short-run while it is negative in the long-run. |
| first_indexed | 2024-04-10T18:51:57Z |
| format | Article |
| id | doaj.art-ea47d90504254088ade1267302604368 |
| institution | Directory Open Access Journal |
| issn | 2251-9092 2251-9106 |
| language | fas |
| last_indexed | 2024-04-10T18:51:57Z |
| publishDate | 2020-02-01 |
| publisher | Institute for Management and Planning Studies |
| record_format | Article |
| series | برنامهریزی و بودجه |
| spelling | doaj.art-ea47d90504254088ade12673026043682023-02-01T06:42:02ZfasInstitute for Management and Planning Studiesبرنامهریزی و بودجه2251-90922251-91062020-02-01244342Impact of Financial and Trade Openness on Financial Development in Oil and Non-Oil Developing Countries using the Panel ARDL Approach (With Emphasis on Institutional Components)Bahram Sahabi0Mehdi Zolfaghari1Somayyeh Alavi2 Department of Economics, Tarbiat Modares University, Tehran, Iran. Department of Economics, Tarbiat Modares University, Tehran, Iran Tarbiat Modares University, Tehran, Iran. Given the importance of financial development to achieve sustainable economic growth, the main objective of this study is to investigate the effect of economic openness (financial and trade openness) on financial development (with emphasis on institutional components) in two groups of oil and non-oil developing countries. In this regard, the Panel ARDL method has been used for the period 2000-2017. The estimated results indicate a positive and significant effect of financial openness on financial development in the oil developing countries and its negative and significant impact on financial development of the non-oil developing countries in the long run. Also, the results show that trade openness has a significant and positive effect on financial development in non-oil developing countries in the long run. While the relationship of trade openness with financial development is statistically meaningless in the oil developing countries. Furthermore, most of the institutional variables in the developing countries have played a positive role in promoting the financial development index in the short-term and long-term. Nevertheless, the effect of these variables on financial development in the non-oil developing countries is very limited in the short-run while it is negative in the long-run.http://jpbud.ir/article-1-1772-en.htmlfinancial developmentfinancial opennessinstitutional componenttrade opennesspanel ardl. |
| spellingShingle | Bahram Sahabi Mehdi Zolfaghari Somayyeh Alavi Impact of Financial and Trade Openness on Financial Development in Oil and Non-Oil Developing Countries using the Panel ARDL Approach (With Emphasis on Institutional Components) برنامهریزی و بودجه financial development financial openness institutional component trade openness panel ardl. |
| title | Impact of Financial and Trade Openness on Financial Development in Oil and Non-Oil Developing Countries using the Panel ARDL Approach (With Emphasis on Institutional Components) |
| title_full | Impact of Financial and Trade Openness on Financial Development in Oil and Non-Oil Developing Countries using the Panel ARDL Approach (With Emphasis on Institutional Components) |
| title_fullStr | Impact of Financial and Trade Openness on Financial Development in Oil and Non-Oil Developing Countries using the Panel ARDL Approach (With Emphasis on Institutional Components) |
| title_full_unstemmed | Impact of Financial and Trade Openness on Financial Development in Oil and Non-Oil Developing Countries using the Panel ARDL Approach (With Emphasis on Institutional Components) |
| title_short | Impact of Financial and Trade Openness on Financial Development in Oil and Non-Oil Developing Countries using the Panel ARDL Approach (With Emphasis on Institutional Components) |
| title_sort | impact of financial and trade openness on financial development in oil and non oil developing countries using the panel ardl approach with emphasis on institutional components |
| topic | financial development financial openness institutional component trade openness panel ardl. |
| url | http://jpbud.ir/article-1-1772-en.html |
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