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Financial Development and Geographic Isolation: Global Evidence

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  • Kodila-Tedika, Oasis
  • Asongu, Simplice
  • Cinyabuguma, Matthias

Abstract

Using cross-country differences in the degree of isolation before the advent of technologies in sea and air transportation, we assess the relationship between geographic isolation and financial development across the globe. We find that pre-historic geographical isolation has been beneficial to development because it has contributed to contemporary cross-country differences in financial development. The relationship is robust to alternative samples, different estimation techniques, outliers and varying conditioning information sets.

Suggested Citation

  • Kodila-Tedika, Oasis & Asongu, Simplice & Cinyabuguma, Matthias, 2016. "Financial Development and Geographic Isolation: Global Evidence," MPRA Paper 73687, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:73687
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    More about this item

    Keywords

    Financial development; Isolation; Agglomeration; Globalization;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • N7 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • O50 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - General

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