The impact of institutions on financial development: Evidence from East Asian countriesYongqi Feng and Xinye Yu Australian Economic Papers, 2021, vol. 60, issue 1, 122-137 Abstract: This paper examines the impact of institutions on regional financial development using a panel data model of 11 East Asian countries during 1996–2017. It divides the institutional factors into six economic factors and six legal‐political factors. The analysis demonstrates that the legal‐political institutional factors have a stronger impact on financial development than the economic institutional factors in East Asia. Improvement in institutional quality such as fiscal freedom, business freedom, control of corruption, government effectiveness, regulatory quality and rule of law can promote financial development. Improvements of these institutional factors facilitate the ability of enterprises to allocate resources and improve the strength of business operations, thereby reducing transaction costs and making the financial operating environment fairer and more efficient. With the improvement of institutional factors, financial development will have more opportunities to develop better. Institutional impacts are more pronounced in the financial development in Malaysia, Indonesia, the Philippines and Myanmar than in the other countries such as China, Japan, Korea and Singapore. Date: 2021 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:bla:ausecp:v:60:y:2021:i:1:p:122-137 Ordering information: This journal article can be ordered from Access Statistics for this article Australian Economic Papers is currently edited by Daniel Leonard More articles in Australian Economic Papers from Wiley Blackwell |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.