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• 1. [Article] Financial Development and Financial Liberalization in Asia: Thresholds, Institutions and the Sequence of Liberalization

  I investigate whether financial openness leads to financial development after controlling for the level of legal/institutional development, and whether trade opening is a precondition for financial opening, ...

  Citation × Citation Citation Abstract Copy Title: Financial Development and Financial Liberalization in Asia: Thresholds, Institutions and the Sequence of Liberalization Author: Ito, Hiro Year: 2005 I investigate whether financial openness leads to financial development after controlling for the level of legal/institutional development, and whether trade opening is a precondition for financial opening, focusing on Asia. Utilizing a panel encompassing 87 less developed countries over the period 1980 to 2000, I find that a higher level of financial openness spurs equity market development only if a threshold level of legal development has been attained, a condition prevalent particularly among emerging market Asian countries. On the issue of sequencing, trade openness is found to be a prerequisite for successful inducement of financial development via capital account liberalization. Title: Financial Development and Financial Liberalization in Asia: Thresholds, Institutions and the Sequence of Liberalization Author: Ito, Hiro Year: 2005 I investigate whether financial openness leads to financial development after controlling for the level of legal/institutional development, and whether trade opening is a precondition for financial opening, focusing on Asia. Utilizing a panel encompassing 87 less developed countries over the period 1980 to 2000, I find that a higher level of financial openness spurs equity market development only if a threshold level of legal development has been attained, a condition prevalent particularly among emerging market Asian countries. On the issue of sequencing, trade openness is found to be a prerequisite for successful inducement of financial development via capital account liberalization. Close