Open AccessWhat drives financial development? A Meta-regression analysis
Author(s) -
Hristos Doucouliagos,
Jakob de Haan,
JanEgbert Sturm
Publication year - 2021
Publication title -
oxford economic papers
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.68
H-Index - 69
eISSN - 1464-3812
pISSN - 0030-7653
DOI - 10.1093/oep/gpab044
Subject(s) - openness to experience , capitalization , market capitalization , stock market , inflation (cosmology) , economics , meta regression , gross domestic product , stock (firearms) , meta analysis , regression analysis , monetary economics , financial system , business , financial economics , macroeconomics , statistics , philosophy , linguistics , horse , theoretical physics , engineering , biology , psychology , social psychology , paleontology , medicine , mechanical engineering , physics , mathematics
This article offers a meta-regression analysis of the literature on the drivers of financial development (FD). Our results based on 1,900 estimates suggest that institutional quality is positively correlated to both private sector credit and stock market capitalization (both as share of Gross Domestic Product). Domestic financial openness has a positive effect on both proxies for FD, while trade openness seems only important for stock market capitalization. Inflation has an adverse effect on FD, which is larger for stock market capitalization. Finally, we conclude that the literature has not yet robustly established that remittances matter for FD.