| ID | 165525 |
| Title Proper | Openness in Financial Services Trade and Financial Development |
| Other Title Information | Evidence from the BRICS Economies |
| Language | ENG |
| Author | Khatun, Rabia |
| Summary / Abstract (Note) | This article investigates the long-run relationship between openness in financial services trade (OPTIFS) and financial development in five BRICS (Brazil, Russia, India, China and South Africa) economies, for the period of 1990–2012. It is found that the variables under consideration possess a long-run relationship in the mentioned economies. Fully modified ordinary least square (FMOLS) and dynamic ordinary least square (DOLS) have been performed to find the long-run coefficient of the variables. Results from FMOLS and DOLS have confirmed that OPTIFS has a positive and significant impact on financial development. The study reveals that 1 per cent increase in trade in financial services causes 0.109 increase in total credit to private sector, which is used as a proxy for financial development, indicating that the government should try to remove barriers from trade in financial services in order to develop better financial structure, thereby promoting further growth. It is also found that some of the control variables like gross savings and gross domestic product have positive and significant impact on financial development at 5 per cent level of significance |
| `In' analytical Note | South Asian Survey Vol. 26, No.1; Mar 2019: p.55-69 |
| Journal Source | South Asian Survey Vol: 26 No 1 |
| Key Words | International Trade ; Financial Development ; Panel Data ; Trade Openness ; Financial Services ; BRICS Countries ; Pedroni Cointegration |