An Evaluation of Simultaneous Openness Hypothesis in the Context of Stock Market Development: Evidence from a Panel of Fifty Three Countries Based a GMM Study

Author(s): Z. T. Abdallah

ABSTRACT
This paper focuses on the impact of the concurrent liberalization of current and capital accounts and quality institutions on stock market development. Using annual data from 1996-2013 for a panel of fifty three (53) developed and developing countries and utilizing dynamic GMM estimators, the results show that banking sector development, economic growth, and the interaction term affect stock market development positively. The paper finds that capital account liberalization affects market development negatively, but the effect of capital account liberalization on market development is contingent on the level of economic growth and development. Further, the results revealed that the impact of trade openness on stock market development is mixed. The research finds negative impact of institutional factors on market development. Finally, the paper does not find support in favour of simultaneous openness hypothesis.

Source:

Journal: Modern Economy
DOI: 10.4236/me.2016.72017 (PDF)
Paper Id: 63576 (metadata)

See also: Comments to Paper

About scirp

(SCIRP: http://www.scirp.org) is an academic publisher of open access journals. It also publishes academic books and conference proceedings. SCIRP currently has more than 200 open access journals in the areas of science, technology and medicine. Readers can download papers for free and enjoy reuse rights based on a Creative Commons license. Authors hold copyright with no restrictions. SCIRP calculates different metrics on article and journal level. Citations of published papers are shown based on Google Scholar and CrossRef. Most of our journals have been indexed by several world class databases. All papers are archived by PORTICO to guarantee their availability for centuries to come.
This entry was posted in ME and tagged , , , , . Bookmark the permalink.

Comments are closed.