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Financial development, political instability, trade openness and growth in Brazil: evidence from a new dataset, 1890-2003
journal contribution
posted on 2023-06-10, 04:45 authored by Nauro Campos, Ekaterina Glebkina, Menelaos Karanasos, Panagiotis KoutroumpisPanagiotis KoutroumpisWhat 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.
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- Published
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- Published version
Journal
Open Economies ReviewISSN
0923-7992Publisher
Springer Science and Business Media LLCExternal DOI
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- Accounting and Finance Publications
Full text available
- Yes
Peer reviewed?
- Yes
Legacy Posted Date
2022-09-16First Open Access (FOA) Date
2022-09-16First Compliant Deposit (FCD) Date
2022-09-15Usage metrics
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