A study of the determinants of financial development in the Russian Federation[Исследование Детерминант Финансового Развития В Российской Федерации]

The paper investigates the problems of determining the main factors (determinants) of financial development, as well as identifying the nature of the influence of these factors on the level of financial development. Based on an analysis of the literature on empirical studies of the impact of indicators of various nature on the characteristics of financial development, as well as theoretical concepts that describe the determinants of financial development, we have compiled a large list of such determinants and divided it into groups. Further, within each group, we conducted a regression analysis of the influence of determinants on the level of financial development, using an intercountry data panel, broken down by group of countries by income level. For the first time, the Financial Development Index, calculated by the IMF, as the best characteristic of financial development, including various aspects of this development, was used as an exogenous variable. Based on the analysis, the most significant (within the relevant groups) determinants of financial development were identified. Applying the results to Russian conditions, we took into account the presence of a number of features of the Russian economy and the Russian financial sector, which generally negatively affect financial development.