Abstract
PurposeThe purpose of this paper is to assess the impact of trade and financial sector openness and their simultaneous openness on financial development of South Asia.Design/methodology/approachTo serve the purpose, a panel data set of four South Asian economies, namely, India, Pakistan, Sri Lanka and Bangladesh, was constituted for the period spanning from 1996 to 2015. Along with the conventional panel unit root test and co-integration test, pooled mean group estimations were used to formulate the empirical findings.FindingsThe findings suggested a significant negative impact of financial openness and significant positive impact of trade openness on the financial development of South Asia. The empirical evidence did not support simultaneous openness of trade and financial sector for the studied region.Originality/valueThe study contributes to the existing literature by analyzing the effect of trade and financial openness on financial development of South Asia. The study provides substantial evidence to the stakeholders for formulating policies that can boost financial development of the region.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
