Article first published online: 24 MAR 2014
© 2014 John Wiley & Sons Ltd
How to Cite
Law, S. H., Tan, H. B. and Azman-Saini, W. N. W. (2014), Globalisation, Institutional Reforms and Financial Development in East Asian Economies. World Economy. doi: 10.1111/twec.12168
- Article first published online: 24 MAR 2014
This study investigates the dynamic effects of globalization on institutions and financial development in East Asian economies using panel data tests. Our empirical results demonstrate that globalization has a significant influence on institutional quality, and that institutional reforms in turn facilitate and support financial development, in particular the development of the banking sector in East Asia. Globalization is also found to have a favorable direct impact on stock market development without passing through an institutional quality channel.