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Sehrawat, MGiri, A (2019). Do Globalization and Institutional Reforms Matter for Financial Structure in Selected Asian Countries? A Panel Data Approach. Applied Economics Quarterly, 65(2), 87-100. https://doi.org/10.3790/aeq.65.2.87
Sehrawat, Madhu Giri, A. K.Sehrawat, Madhu Giri, A. K. (2019). "Do Globalization and Institutional Reforms Matter for Financial Structure in Selected Asian Countries? A Panel Data Approach" Applied Economics Quarterly, vol. 65no. 2, 2019 pp. 87-100. https://doi.org/10.3790/aeq.65.2.87
Sehrawat, MGiri, A (2019). Do Globalization and Institutional Reforms Matter for Financial Structure in Selected Asian Countries? A Panel Data Approach. Applied Economics Quarterly, Vol. 65 (Issue 2), pp 87-100. https://doi.org/10.3790/aeq.65.2.87

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Do Globalization and Institutional Reforms Matter for Financial Structure in Selected Asian Countries? A Panel Data Approach

Sehrawat, Madhu | Giri, A. K.

Applied Economics Quarterly, Vol. 65 (2019), Iss. 2 : pp. 87–100

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Madhu, Sehrawat, Assistant Professor, Finance and Economics Department, TA Pai Management Institute, Manipal-333031, India.

Giri, A. K., Associate Professor, Department of Economics and Finance, Birla institute of Technology and Science (BITS), Pilani-333031, India.

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Abstract

Abstract

This present study aims to examine the dynamic relationship between globalization, institutional reforms, and financial development in the context of South Asian economies over the period 1985–2015 by employing panel data methods. The Westerlund (2007) panel co-integration test result indicates that there exists a long-run equilibrium relationship between globalization, institutional reforms, and financial development. The findings of panel dynamic ordinary least squares (PDOLS) indicate that the effect of globalization is positive and statistically significant to financial development. Furthermore, the empirical evidence of a dynamic panel error-correction model reveals a unidirectional causal relationship running from globalization and institutional reform to financial development. In terms of policy recom-mendations, the study suggests that it is vital to focus on globalization and institutional reforms to promote effectiveness of the financial system and economic performance in the region.

JEL Classifications: F19, G29

globalization, institutional reforms, South Asia, Panel Dynamic OLS (PDOLS), panel causality

Table of Contents

Section Title Page Action Price
Madhu Sehrawat / A. K. Giri: Do Globalization and Institutional Reforms Matter for Financial Structure in Selected Asian Countries? A Panel Data Approach 1
Abstract 1
1. Introduction 1
2. Literature Review 3
3. Data, Variables, and Model Specification 5
4. Econometric Methodology 6
4.1 Panel Unit Root Test with Cross-Section Dependence 6
4.2 Panel Co-integration Tests with Structural Breaks 7
4.3 Panel Dynamic Ordinary Least Squares (PDOLS) 7
4.4 Panel Causality Test 8
5. Empirical Results and Discussion 8
6. Conclusions and Policy Recommendations 1
References 1