Financial globalization and financial development in transition countries
This paper examines the impact of financial globalization on financial development in transition countries. An empirical test is elaborated with new indicators of financial globalization and financial development, closer to theoretical and conceptual framework. On the basis of Blundell and Bond (1998) a dynamic panel data model is employed. The principal results suggest, in general, that financial globalization has a positive and significant relationship with the process of growth of the financial system, but not with the process of development, that is to say, without a better performance of basic financial functions.