<abstract xmlns="http://www.w3.org/1999/xhtml"><p> Great numbers of countries have made the limitations loose on the transnational goods, services and capital flows and begun to follow a policy of export-oriented growth. Total value of global financial asset flows exceeded the value of global trade over time and financial markets have experienced considerable expansions in almost every country. This paper investigates the interaction between openness and financial development in 9 Central and Eastern European countries during 1996-2014 period employing cointegration test of Westerlund and Edgerton (2007) and causality test of Dumitrescu and Hurlin (2012). We reached that openness affected financial sector development positively in the long term. Furthermore, there was one-way causality from financial openness to financial sector development.</p></abstract>

Great numbers of countries have made the limitations loose on the transnational goods, services and capital flows and begun to follow a policy of export-oriented growth. Total value of global financial asset flows exceeded the value of global trade over time and financial markets have experienced considerable expansions in almost every country. This paper investigates the interaction between openness and financial development in 9 Central and Eastern European countries during 1996-2014 period employing cointegration test of Westerlund and Edgerton (2007) and causality test of Dumitrescu and Hurlin (2012). We reached that openness affected financial sector development positively in the long term. Furthermore, there was one-way causality from financial openness to financial sector development.

Openness and Financial Development in Central and Eastern European Countries

Studies in Business and Economics

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

{"article-title":"Openness and Financial Development in Central and Eastern European Countries"}

Great numbers of countries have made the limitations loose on the transnational goods, services and capital flows and begun to follow a policy of...

Openness and Financial Development in Central and Eastern European Countries

Published Online: Mar 01, 2018

Page range: 5 - 16

DOI: https://doi.org/10.1515/sbe-2017-0032

Keywords
Financial openness, trade openness, financial sector development, panel data analysis

© 2018

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Openness and Financial Development in Central and Eastern European Countries

Published Online: Mar 01, 2018

Page range: 5 - 16

DOI: https://doi.org/10.1515/sbe-2017-0032

KeywordsFinancial openness, trade openness, financial sector development, panel data analysis

© 2018

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Keywords
Financial openness, trade openness, financial sector development, panel data analysis