Financial Development, Institutional Quality and Economic Performance in East Asian Economies

This paper examines the effects of financial development and institutional quality on economic performance in the East Asian economies using the panel cointegration and panel group mean fully modified OLS estimations. The empirical results based on the Solow growth model indicate that well developed institutional quality and financial market lead to the improved output per capita in East Asian economies. The effect of financial development on economic performance is larger when the financial system is embedded within a sound institutional framework. Thus, institutional improvements in these economies are important, not only in promoting economic development but also to deliver the benefits of financial development.


Issue Date:
2006
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/50150
Published in:
Review of Applied Economics, Volume 02, Number 2
Page range:
201-216
Total Pages:
16
JEL Codes:
G20; E44




 Record created 2017-04-01, last modified 2017-04-27

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