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EURO BÖLGESİNDE TİCARİ AÇIKLIK, FİNANSAL AÇIKLIK VE FİNANSAL GELİŞME: DİNAMİK PANEL VERİDEN KANIT

Year 2018, Volume: 7 Issue: 14, 1 - 17, 05.01.2019

Abstract

Bu çalışma, ticaret ve finansal açıklığın
finansal kalkınma üzerindeki etkisini 19 Avro Bölgesi ülkesini örnekleyerek
2000'den 2015'e kadar olan verileri incelemektedir. Finansal kalkınmanın en
önemli iki göstergesi olan özel kredi ve borsa büyüklüğü kullanıyoruz.  Dinamik panel tahmin teknikleri (GMM) kullanıyoruz
ve ampirik sonuçlar, hem ticari hem de finansal açıklığın finansal gelişmenin
istatistiksel olarak önemli belirleyicileri olduğunu göstermektedir.
Sonuçlarımız, ticari (finansal) açıklığın marjinal etkilerinin finansal
(ticari) açıklık derecesi ile negatif ilişkili olduğunu ve göreceli olarak
kapalı ekonomilerin ticaret ve / veya sermaye hesaplarının açılmasından en
fazla yarar sağladığını göstermektedir. 
Bulgularımız, finansal gelişim için her iki açıklığın gerekli olduğunu
belirten iyi bilinen Rajan ve Zingales hipotezine kısmi destek sağlamaktadır.

References

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TRADE OPENNESS, FINANCIAL OPENNESS, AND FINANCIAL DEVELOPMENT IN EUROZONE: EVIDENCE FROM DYNAMIC PANEL DATA

Year 2018, Volume: 7 Issue: 14, 1 - 17, 05.01.2019

Abstract

This paper investigates the impact of trade and financial openness on financial development, sampling 19 Eurozone countries with data spanning from 2000 to 2015. We use two of the most important indicators of financial development-private credit and stock market capitalization. The empirical results, using dynamic panel estimation techniques (GMM), suggest that both trade and financial openness are statistically significant determinants of financial development.  Our results also suggest that the marginal effects of trade (financial) openness are negatively related to the degree of financial (trade) openness, indicating that relatively closed economies stand to benefit most from opening up their trade and/or capital accounts. Our findings provide partial support to the well known Rajan and Zingales hypothesis, which stipulates that both types of openness are necessary for financial development to take place.

References

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  • AIZENMAN, Joshua (2008), “On the hidden links between financial and trade opening”, J. Int. Money Finan, 27 (3), 372–386.
  • AIZENMAN, Joshua; Ilan NOY (2009), “Endogenous financial and trade openness”, Review of Development Economics, 13 (2), 175–189.
  • ANDERSON, T. W.; Hsiao, CHENG (1981) “Estimation of Dynamic Models with Error Components”, Journal of the American Statistical Association, 76(375), 598-606.
  • ANDERSON, T. W.; Hsiao, CHENG (1982), “Formulation and Estimation of Dynamic Models Using Panel Data”, Journal of Econometrics, 18, 47-82.
  • ANDRIANOVA, Svetlana; Panicos DEMETRIADES; Anja SHORTLAND (2008), “Government ownership of banks, institutions, and financial development”, Journal of Development Economics, 52(1-2), 218-252.
  • ARELLANO, Manuel; Stephen BOND (1991), “Some Tests of Specification for Panel: Monte Carlo Evidence and An Application to Employment Equations”, Review of Economic Studies, 58 (2), 277-297.
  • ARELLANO, Manuel; Olympia BOVER (1995), “Another Look at the Instrumental Variable Estimation of Error-Components Models”, Journal of Econometrics, 68(1), 29-51.
  • ARESTIS, Philip; Panicos DEMETRIADES (1997), “Financial Development and Economic Growth: Assessing the Evidence”, Economic Journal, 107(442), 783-799.
  • ARIZALA, Francisco; Eduardo CAVALLO; Arturo GALINDO (2009), Financial development and TFP growth: cross-country and industry-level evidence. Working paper, Inter-American Development Bank.
  • BALTAGI. Badi H (2005), Econometric Analysis of Panel Data, Third Edition, John Wiley&Sons, Ltd., England.
  • BALTAGI. Badi H; Panicos DEMETRIADES; Siong Hook LAWaw (2007), Financial Development, Openness and Institutions: Evidence From Panel Data, Center for Policy Research Working Papers No.7, [Erişim Adresi: http://www.worldeconomyandfinance.org/working papers_publications/working_paper_PDFs/WEF0022.pdf, Erişim: 24.01.2013].
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  • BECERRA, O; Eduardo CAVALLO; C. SCARTASCINI (2012), “The politics of financial development: The role of interest groups and government capabilities”, Journal of Banking & Finance, 36, 626–643.
  • BECK, Thorsten (2002), “Financial development and international trade: is there a link?”, Journal of International Economics, 57 (1), 107–131.
  • BECK, Thorsten; DEMİRGÜÇ-KUNT Aslı; Ross LEVINE (2003), “Law, Endowments, and Finance”, Journal of Financial Economic, 70(2), 137-181.
  • BECK, Thorsten; Ross LEVINE, Norman LOAYZA (2000), “Finance and the sources of growth”, Journal of Financial Economic, 58 (1-2), 261–300.
  • NACEUR, Sami Ben; Mohammed OMRAN (2007), “The Determinants of Stock Market Development in the MENA Region”, Forthcoming in Managerial Finance, 33(7), 477-489.
  • BENCIVENGA, Valeria R; Bruce D. SMITH; Ross M. STARR (1995), “Transactions costs, technological choice, and endogenous growth”, Journal of Economic Theory, 67, 1995, 153–177.
  • BENCIVENGA, Valeria R; Bruce D. SMITH (1993), “Some Consequences of Credit Rationing in an Endogenous Growth Model”, Journal of Economic Dynamics and Control, 17(1-2), 97-122.
  • BLUNDELL, Richard; Stephen BOND (1998), “Initial Conditions and Moment Restrictions in Dynamic Panel Data Models”, Journal of Econometrics, 87(1), 115-143. BLUNDELL, Richard; Stephen BOND (2000), “GMM Estimation with Persistent Panel Data: An Application to Production Functions”, Econometric Reviews, 19, 321–340.
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  • BREITUNG, Jörg (2000), “The local power of some unit root tests for panel data”, Advances in Econometrics, 15; Nonstationary Panels, Panel Cointegration, and Dynamic Panels, ed. B. H. Baltagi, 161–178. Amsterdam: JAY Press.
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  • CALDERON-ROSSELL, R. J. (1998), The Structure and Evolution of World Stock Markets, in Pacific Basin Capital Markets, Research Proceeding of the First Annual Pacific Basin Finance Conference (Eds) S. G. Rhee and P. C. Rosita, Taipei, China, 13–15 March 1989, North-Holland, Amsterdam. 1990.
  • CAMPOS, Nauro F; Menelaos G. KARANASOS; Bin TAN (2012), “Two to tangle: Financial development, political instability and economic growth in Argentina”, Journal of Banking & Finance, 36 (1), 290–304.
  • CARLIN, Wendy; Colin MAYER (2003), “Finance, investment and growth”, Journal of Financial Economics, 69(1), 191–226.
  • CAVALLO, Eduardo; Izquierdo ALEJANDRO, John Jairo LEON (2009), The role of relative price volatility in the efficiency of investment allocation. Working paper, Inter-American Development Bank.
  • CHIN, Menzie D.; Hiro ITO (2006) “What matters for financial development? Capital controls,institutions and interactions”, Journal of Development Economics, 81 (1), 163–192.
  • CHOI, In (2001), “Unit root tests for panel data”, Journal of International Money and Finance, 20(2), 249–272.
  • COORAY, Arusha (2011), “The role of the government in financial sector development”, Economic Modelling, 28(3), 928-938.
  • DEMİRGÜÇ-KUNT Aslı; Ross LEVINE (1996), “Stock Markets, Corporate Finance and Economic Growth: an Overview”, The World Bank Economic Review, 10, 223–39.
  • DEMİRGÜÇ-KUNT Aslı; Vojislav MAKSIMOVIC (1998), “Law, Finance, and Firm Growth”, Journal of Finance, 53 (6), 2107–2137.
  • DICKEY, David A.; Wayne A. FULLER (1979), “Distribution of the Estimators for Autoregressive Time Series with a Unit Root,” Journal of the American Statistical Association, 74(366), 427–431.
  • DO, Quy-Toan; Andrei A. LEVCHENKO (2004), Trade and financial development. World Bank working paper 3347.
  • EL-WASSAL, Kamal A. (2005), “Understanding The Growth in Emerging Stock Markets”, Journal of Emerging Market Finance, 4,227–61.
  • GARCIA, Valeriano F.; Lin LIU (1999), “Macroeconomic Determinants of Stock Market Development”, Journal of Applied Economics, 2(1), 29–59.
  • GINEBRI, Sergio; Giacomo PETRIOLI; G., Laura SABANI (2000), Financial deepening, trade openness and growth: a multivariate cointegrated analysis of the complementary effects. CIDEI working paper 62.
  • GIRMA, Sourafel; Anja SHORTLAND (2008), “The political economy of financial development”, Oxford Economic Papers, 60 (4), 567–596.
  • GREENWOOD, Jeremy; Bruce D. SMITH (1997). “Financial Markets in Development, and the Development of Financial Markets”, Journal of Economic Dynamics and Control, 21(1), 145-181.
  • GREENWOOD, Jeremy; Boyan JOVANIC (1990), “Financial Development, Growth and the Distribution of Income”, Journal of Political Economy, 98(5), 1076-1107.
  • HADRI, Kaddour (2000), “Testing for Stationarity in Heterogenous Panel Data”, Econometrics Journal, 3, 148-161.
  • HANH, Pham Thi Hong (2010). Financial Development, Financial Openness and Trade Openness: New evidence, FIW Working Paper No. 60.
  • HANSEN, Lars Peter (2002), “Large Sample Properties of Generalized Method of Moments Estimators”, Econometrica,50, 1029-1054.
  • HARIS Richard D.; EliasTZAVALIS (1999), “Inference for Unit Roots in Dynamic Panels Where the Time Dimension is Fixed”, Journal of Economics, 91(2), 201-226.
  • Hellwig, Martin (1991), Banking, Financial Intermediation, and Corporate Finance, In: European Financial Integration, Alberto Giovannini, Colin Mayer (Ed.), Cambridge University Press: Cambridge, England.
  • HENDERSON, Daniel J.; Chris PAPAGEORGIOU; Christopher F, PARMETER (2012), “Who benefits from financial development? new methods, new evidence”, European Economic Review, 63, 47-67.HODLER, Roland (2007), Institutions, Trade and the Political Economy of Financial Development, NNCR Ttrade Regulation, Swiss National Centre of Competence in Research, Working paper No. 2007/27, [Erişim Adresi: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1092106, (Erişim: 17.01.2013)].
  • HUANG, Yongfu (2009), “The political economy of financial reform: Are Abiad and Mody right?” Journal of Applied Econometrics, 24(7), 1207–1213.
  • IM, Kyung Solm; M. Hashem PESARAN; Yongcheoo SHIN (2003) “Testing for Unit Roots in Heterogeneous Panels,” Journal of Econometrics, 115(1), 53-74.
  • JAYARATHE, Jith; Philip E. STRAHAN (1996), “The finance-growth nexus: evidence from bank branch deregulation”, Quarterly Journal of Economics, 111, 639–670.
  • JEONG, Hyeok; Robert M. TOWNSEND (2007), “Sources of TFP growth: occupational choice and financial deepening”, Economic Theory, 32(1), 179–221.
  • KAR, Muhsin (2001), ”Finansal Kalkınma ve Ekonomik Büyüme Arasındaki Nedensellik ilişkisi: Türkiye Örneği”, Dokuz Eylül Üniversitesi, işletme Fakültesi Dergisi, 2(2), 150-169.
  • Kendall, Jake (2012),“Local financial development and growth”, Journal of Banking & Finance, 36(5), 1548–1562.
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Details

Primary Language English
Journal Section Articles
Authors

Hasan Ayaydın 0000-0002-5395-1411

Aykut Karakaya 0000-0001-6491-132X

Fahrettin Pala 0000-0001-9565-8638

Publication Date January 5, 2019
Published in Issue Year 2018 Volume: 7 Issue: 14

Cite

APA Ayaydın, H., Karakaya, A., & Pala, F. (2019). TRADE OPENNESS, FINANCIAL OPENNESS, AND FINANCIAL DEVELOPMENT IN EUROZONE: EVIDENCE FROM DYNAMIC PANEL DATA. Global Journal of Economics and Business Studies, 7(14), 1-17.