Campos, Nauro;
Glebkina, Ekaterina;
Karanasos, Menelaos;
Koutroumpis, Panagiotis;
(2022)
Financial Development, Political Instability, Trade Openness and Growth in Brazil: Evidence from a New Dataset, 1890-2003.
Open Economies Review
10.1007/s11079-022-09684-4.
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Abstract
What is the relationship between financial development, political instability, trade openness and economic growth and how does it change over time? This paper examines these links using a new econometric approach and unique data set. In this paper, we apply the logistic smooth transition model (LST) to annual data for Brazil from 1890 to 2003. The main finding is that financial development has a time-varying effect on economic growth, which depends significantly on (jointly estimated) trade openness thresholds. In addition, political instability displays a negative effect on growth whereas trade openness a positive one. Finally, our estimates show that in 56% of the years in which financial development has a ‘below the mean’ effect, we find that trade openness experiences a substantial ‘above the mean’ change.
| Type: | Article |
|---|---|
| Title: | Financial Development, Political Instability, Trade Openness and Growth in Brazil: Evidence from a New Dataset, 1890-2003 |
| Open access status: | An open access version is available from UCL Discovery |
| DOI: | 10.1007/s11079-022-09684-4 |
| Publisher version: | https://doi.org/10.1007/s11079-022-09684-4 |
| Language: | English |
| Additional information: | This article is licensed under a Creative Commons Attribution 4.0 International License, which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons licence, and indicate if changes were made. The images or other third party material in this article are included in the article's Creative Commons licence, unless indicated otherwise in a credit line to the material. If material is not included in the article's Creative Commons licence and your intended use is not permitted by statutory regulation or exceeds the permitted use, you will need to obtain permission directly from the copyright holder. To view a copy of this licence, visit http://creativecommons.org/licenses/by/4.0/. |
| Keywords: | Social Sciences, Economics, Business & Economics, Economic growth, Financial development, Political instability, Trade openness, Smooth transition models, ECONOMIC-GROWTH, INSTITUTIONS, LIBERALIZATION, GEOGRAPHY, POLICY, RULE |
| UCL classification: | UCL UCL > Provost and Vice Provost Offices > UCL SLASH > SSEES UCL > Provost and Vice Provost Offices > UCL SLASH |
| URI: | https://discovery.ucl.ac.uk/id/eprint/10156420 |
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