Publication Type
Conference Proceeding Article
Version
submittedVersion
Publication Date
7-2022
Abstract
This paper analyzed the association between bank and capital markets financial development with income per capita in three regions; ASEAN-5 economies (Singapore, Malaysia, Thailand, Philippines, Indonesia), Asia-5 (Japan, China, Hong Kong SAR, South Korea and India) and OECD-7 (Australia, Canada, Denmark, Norway, Sweden, UK and US) from 2000 to 2017 using panel data regressions. A ley lesson ASEAN-5 can learn from Asia-5 and OECD-7 experience is that bank size does matter despite digital disruptions to their banking system; yet large financial structure that favors banks is negatively associated with Asia-5, and importantly, efficient banking system (not bank size alone) is positively associated with OECD-7 income per capita. The finding has practical policy implications for ASEAN-5’s financial sector liberalization programmes that impact the depth, breadth and efficiency of banks and capital markets.
Keywords
financial development, banking system, capital markets, economic growth
Discipline
Asian Studies | Finance
Research Areas
Macroeconomics
Publication
Economics and finance readings: Selected papers from Asia-Pacific Conference on Economics & Finance, 2021, December 16-17, Virtual
ISBN
9789811917196
Publisher
Springer
City or Country
Singapore
Citation
TAN, Swee Liang.
What, why and how financial development matters: Evidence of ASEAN-5, Asia-5 and OECD-7 economies. (2022). Economics and finance readings: Selected papers from Asia-Pacific Conference on Economics & Finance, 2021, December 16-17, Virtual.
Available at: https://ink.library.smu.edu.sg/soe_research/2512
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.