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Openness And Financial Development In Central And Eastern European Countries

Author

Listed:
  • BAYAR Yilmaz

    (Usak University, Turkey)

  • AKYUZ Fatma

    (Usak University, Turkey)

  • EREM Isil

    (Usak University, Turkey)

Abstract

Great numbers of countries have made the limitations loose on the transnational goods, services and capital flows and begun to follow a policy of export-oriented growth. Total value of global financial asset flows exceeded the value of global trade over time and financial markets have experienced considerable expansions in almost every country. This paper investigates the interaction between openness and financial development in 9 Central and Eastern European countries during 1996-2014 period employing cointegration test of Westerlund and Edgerton (2007) and causality test of Dumitrescu and Hurlin (2012). We reached that openness affected financial sector development positively in the long term. Furthermore, there was one-way causality from financial openness to financial sector development.

Suggested Citation

  • BAYAR Yilmaz & AKYUZ Fatma & EREM Isil, 2017. "Openness And Financial Development In Central And Eastern European Countries," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 12(3), pages 5-16, December.
    • Handle: RePEc:blg:journl:v:12:y:2017:i:3:p:5-16
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