Markets for risk and openness to trade: how are they related?

• 成果类型: Article
• 署名作者: Svaleryd, H; Vlachos, J
• 署名单位: Stockholm School of Economics; Stockholm University
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/S0022-1996(01)00153-2
• 发表日期: 2002
• 页码: 369-395
• 关键词: Financial Markets; Trade policy; panel data

摘要

If protectionist trade policies aim to insure domestic industries against swings in world market prices, the development of financial markets could lead to trade liberalization. Likewise, trade liberalization could lead to the development of financial markets that help agents diversify the added risks. In this paper, we empirically address the hypothesis that there is a positive interdependence between financial development and liberal trade policies. We find a positive and economically significant relationship between the two, with causation running in both directions. The results are, however, somewhat dependent on the measure of trade policy being used. (C) 2002 Elsevier Science B.V. All rights reserved.