Financial Development and Economic Activity in Advanced and Developing Open Economies: Evidence from Panel Cointegration

摘要: This study considers the effects of financial development on output in a panel cointegration framework, focusing implications trade and openness. Our analysis indicates that after controlling for cross-sectional dependence, typical relationship between finance does not hold long run. relationship, however, is re-established once we account economic While openness emerges as more important developing countries, advanced economies. In run, causality runs from to economies, while economies bidirectional. There no short-run output, however.