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Does Financial Development Enhance Foreign Trade in Selected Transitional Economies?

dc.contributor.authorTsaurai, Kunofiwa
dc.contributor.authorHlupo, Patience
dc.date.accessioned2021-04-01T13:32:44Z
dc.date.available2021-04-01T13:32:44Z
dc.date.issued2020-12-30
dc.identifier.issn1508-2008
dc.identifier.urihttp://hdl.handle.net/11089/34912
dc.description.abstractThe study investigates the influence of financial development on foreign trade in transitional economies using panel data (1994–2014). Although empirical studies on the impact of financial development on foreign trade are available, none of them that the authors are aware of attempted to explore the subject matter in the context of transitional economies. None attempted to investigate if human capital development is a channel through which financial development influences foreign trade or international trade. Under fixed effects, financial development was found to have a non‑significant positive influence on foreign trade, while the random effects approach shows a significant positive relationship running from financial development towards foreign trade. The findings resonate with the majority of the literature on the subject. However, pooled ordinary least squares (OLS) shows that financial development had a significant negative influence on foreign trade. Under both fixed and random effects, human capital development was found to be a channel through which financial development had a significant positive effect on foreign trade. The results are in line with Patrick’s (1966) argument that foreign trade is quickened by high levels of human capital and financial development. The implication of the study is that transitional authorities should develop and implement human capital development enhancement policies in order to enable financial development to have a significant positive effect on foreign trade. In contrast to the available literature, human capital development was found to have had a significant negative impact on foreign trade under the OLS approach. Future studies on the subject matter should address the endogeneity concerns and the dynamic characteristics of the foreign trade data.en
dc.description.abstractW opracowaniu zbadano wpływ rozwoju finansowego na handel zagraniczny w gospodarkach przejściowych z wykorzystaniem danych panelowych (dla lat 1994–2014). Chociaż dostępne są badania empiryczne dotyczące wpływu rozwoju finansowego na handel zagraniczny, żadne ze znanych autorom badań nie stanowiło próby zgłębienia tematu w odniesieniu do gospodarek przejściowych. Nie podjęto próby zbadania, czy rozwój kapitału ludzkiego jest kanałem, poprzez który rozwój finansowy wpływa na handel zagraniczny lub handel międzynarodowy. W przypadku podejścia opartego o efekty stałe stwierdzono, że rozwój finansowy nie ma istotnego pozytywnego wpływu na handel zagraniczny, podczas gdy podejście oparte o efekty losowe wskazuje na istotną pozytywną zależność między rozwojem finansowym a handlem zagranicznym. Ustalenia te są zbieżne z większością literatury przedmiotu. Jednakże, metoda pooled OLS wskazuje, że rozwój finansowy miał znaczący negatywny wpływ na handel zagraniczny. Zarówno w przypadku podejścia opartego o efekty stałe, jak i losowe, rozwój kapitału ludzkiego okazał się kanałem, przez który rozwój finansowy miał istotny pozytywny wpływ na handel zagraniczny. Wyniki ten są zgodne z argumentacją Patricka (1966), że handel zagraniczny jest napędzany przez wysoki poziom kapitału ludzkiego i rozwoju finansowego. Z badania wynika, że władze państw przejściowych powinny opracować i wdrożyć politykę rozwoju kapitału ludzkiego, tak aby rozwój finansowy miał znaczący pozytywny wpływ na handel zagraniczny. W przeciwieństwie do dostępnej literatury, niniejsze badanie wykazało, że rozwój kapitału ludzkiego miał znaczący negatywny wpływ na handel zagraniczny przy zastosowaniu podejścia OLS. Przyszłe badania na ten temat powinny uwzględniać kwestie związane z endogennością i dynamicznym charakterem danych dotyczących handlu zagranicznego.pl
dc.language.isoen
dc.publisherWydawnictwo Uniwersytetu Łódzkiegopl
dc.relation.ispartofseriesComparative Economic Research. Central and Eastern Europe;4pl
dc.rights.urihttps://creativecommons.org/licenses/by-nc-nd/4.0
dc.subjectFinancial Developmenten
dc.subjectForeign tradeen
dc.subjectTransitional Economiesen
dc.subjectPanel Dataen
dc.subjectrozwój finansowypl
dc.subjecthandel zagranicznypl
dc.subjectgospodarki przejściowepl
dc.subjectdane panelowepl
dc.titleDoes Financial Development Enhance Foreign Trade in Selected Transitional Economies?en
dc.title.alternativeCzy rozwój finansowy wpływa na rozwój handlu zagranicznego w wybranych gospodarkach przejściowych?pl
dc.typeArticle
dc.page.number69-86
dc.contributor.authorAffiliationTsaurai, Kunofiwa - Ph.D., Associate Professor at the University of South Africa, Department of Finance, Risk Management and Banking, Pretoria, South Africaen
dc.contributor.authorAffiliationHlupo, Patience - Lecturer at Bindura University of Technology, Bindura, Zimbabween
dc.identifier.eissn2082-6737
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dc.contributor.authorEmailTsaurai, Kunofiwa - kunofiwa.tsaurai@gmail.com
dc.contributor.authorEmailHlupo, Patience - phlupo@gmail.com
dc.identifier.doi10.18778/1508-2008.23.28
dc.relation.volume23


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