Government, Openness and Finance: Past and Present / Panicos O. Demetriades, Peter L. Rousseau.

Format:

Book

Author/Creator:

Demetriades, Panicos O.

Contributor:

National Bureau of Economic Research.

Rousseau, Peter L.

Series:

Working Paper Series (National Bureau of Economic Research) no. w16462.

NBER working paper series no. w16462

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Government, Openness and Finance

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2010.

Summary:

We explore the role of government in the nexus of finance and trade starting from the earliest days of organised finance in England and then broadening the analysis to 84 countries from 1960 to 2004. For 18th century England, we find that the government expenditures and international trade did have a positive long-run effect on financial development when measured as the value of private loans issued at the Bank of England. For the wider panel of countries and more recent data, we find that government expenditures and trade have positive effects on financial development for countries that are in the mid-ranges of economic development as measured by their per capita incomes, but have little effect for poor countries and strongly negative effects for the wealthiest ones.

Notes:

Print version record

October 2010.